Stablecoin firm Circle formally submits IPO filing to the SEC, signalling the company’s intent to become a public trading company.
The firm has not yet disclosed the number of shares it plans to sell, nor has it shared the price range for its new IPO filing. The company filed a confidential form S-1 document to the United States Securities and Exchange Commission (SEC).
Circle is a financial technology company that was vital in developing the stablecoin USDC (USD Coin). Circle was founded in 2013 by Jeremy Allaire and Sean Neville. The company initially focused on creating products and services related to blockchain technology and digital currencies.
USDC, launched by Circle in partnership with Coinbase, is a stablecoin pegged to the U.S. dollar, meaning that its value is designed to remain stable and equivalent to one U.S. dollar. USDC is built on the Ethereum blockchain and operates as an ERC-20 token.
It is the second most popular stablecoin behind USDT, with a market capitalization of approximately $25 billion.
The firm has announced that its initial public offering (IPO) is anticipated to occur following the completion of the Securities and Exchange Commission’s review process, contingent upon market dynamics and other factors.
In an earlier disclosure, the company had asserted a valuation of $9 billion in connection with a 2022 agreement to become public through a special-purpose acquisition company. However, this arrangement was terminated in December 2022. Despite disappointment that the proposed transaction had timed out, Circle CEO Jeremy Allaire affirmed the company’s ongoing intention to proceed with the public listing.
Circle’s recent move has come on the heels of the SEC’s approval of the eleven spot Bitcoin ETFs to be listed on exchanges. The shift in the regulatory landscape, where the SEC is showing less reluctance towards accepting crypto-related products and being open to a dialogue for an amicable resolution, has provided an ideal environment for Circle to make its move of becoming public.
Circle’s involvement in the cryptocurrency space extends beyond USDC. The company has been involved in various initiatives to promote the adoption of blockchain and digital currencies in the financial sector. It also offers various financial services, including Circle Pay, a peer-to-peer payment platform.
Circle is one of many crypto-related companies to go public. Coinbase (COIN), the prominent U.S. cryptocurrency exchange, marked a landmark moment for the crypto industry by going public in April 2021 through a direct listing on the Nasdaq.
EQONEX Group (EQOS) achieved a significant milestone by becoming the first crypto-focused exchange to list on the Nasdaq in September 2020, opting for a conventional initial public offering (IPO). However, EQONEX closed its crypto exchange in August of 2022 to focus on their business’s asset management and custody solutions side.
The recent move by Circle signals a growing positive sentiment around the cryptocurrency market as the move highlights the willingness of the masses along with regulatory authorities towards crypto adoption.
The firm’s recent move is good news for its employees, especially since last year, when, in July of 2023, Circle was forced to lay off a portion of its workforce due to the prolonged crypto winter caused by the FTX crash.
The company shifted focus to its core business activities and reduced investments towards its other non-core pursuits, which caused a reduction in operational expenses and workforce.
