If EQT and FT Partners find buyers and see this deal concluded, they could bring in a minimum of USD 3 billion to USD 4 billion, according to people familiar with the matter cited by Bloomberg. Currently looking for buyers, the selling process for Banking Circle could get off the ground in the first quarter of 2025, as per the same sources, which requested not to be identified due to the details not being yet public. The Luxembourg-based company could pose interest to private equity firms, as well as large credit card and banking organisations on account of its position in the industry and offering.
At the time of writing, no definitive decision has been made, with EQT still having the option to hold onto the business. In addition, the move could also result in EQT only selling a minority stake in Banking Circle. People also mentioned Morgan Stanley’s involvement in the sales process, with the financial institution co-advising on the deal. When asked for a comment on the news, representatives from EQT, FT Partners, and Morgan Stanley declined, while a spokesperson for Banking Circle did not directly reply to the solicitation.
The EQT VIII fund and EQT Ventures acquired Banking Circle from Saxo Bank back in July 2018, with EQT VIII owning the majority of the company. At that time, the move aimed to support Banking Circle’s development strategy in current and new geographies and the expansion of its product portfolio.
As part of its product suite, Banking Circle delivers a cross-border payment service that aims to be more optimised and efficient compared to traditional country-to-country payments. Additionally, the company’s cloud-based infrastructure provides real-time transactions in 24 currencies intending to minimise the costs posed by cross-border transactions. Back in August 2024, Banking Circle also launched EURI, a stablecoin that falls in line with the Markets in Crypto Assets Regulation (MiCA) requirements. The roll-out was made public after the implementation of the first phase of the MiCA regulation, being the first stablecoin controlled by the rule that was issued and supported by a bank in the EU.
Moreover, just a few days before the launch of EURI, Banking Circle obtained ISO/IEC 27001:2022 certification for information security management systems. The accreditation highlighted Banking Circle’s commitment to information security, with the company planning to continue to put legal, regulatory, and contractual obligations at the heart of its operations.
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