Circle Internet Financial Ltd., the issuer of the USDC stablecoin, is reportedly considering an initial public offering (IPO) in early 2024, according to people familiar with the matter. According to the sources, Circle is discussing its plans for an IPO with advisors, although it is not certain whether Circle will decide to pursue an IPO.
While it is unclear how much Circle would seek to be valued in an IPO, a planned blank-check deal in 2022 last valued the company at $9 billion, though the deal was ultimately not completed.
“Becoming a U.S.-listed public company has long been part of Circle’s strategic aspirations. We don’t comment on rumors,” a representative for Circle said in a statement.
Circle remains tight-lipped on the details. “We don’t comment on rumors,” the representative added. Circle, which is currently a private company, considering an IPO, would make shares available for purchase by the public for the first time.
Last year, Circle abandoned its plans to go public through a merger with Concord Acquisition Corp., a blank-check firm led by former Barclays CEO Bob Diamond.
Investors in Circle include Goldman Sachs Group Inc., General Catalyst Partners, BlackRock Inc., Fidelity Management and Research LLC, and Marshall Wace, among others.
In February 2022, Circle’s valuation reached $9 billion after renegotiating its merger deal with Concord. However, the market capitalization of its stablecoin USDC has since declined by 56%, from its June 2022 peak of $55.9 billion to $24.6 billion.
Meanwhile, Circle is one of the leading issuers of stablecoins, a type of crypto asset typically pegged to a fiat currency like the US dollar. Traders often use stablecoins to quickly move assets between different crypto exchanges.
In early 2023, Circle disclosed having $3.3 billion in exposure to the now-collapsed Silicon Valley Bank, which briefly caused a de-pegging of its USD Coin. A news reported in August that Circle plans to share regular financial reports with the public and has hired Deloitte as its auditor.
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