Circle, the Company Behind USDC, Has Officially Filed for an IPO

Circle, the company behind USDC, has officially filed for an IPO, aiming to list on the New York Stock Exchange under the ticker symbol CRCL.

Circle, the company behind the second-largest dollar-linked cryptocurrency, USD Coin, on Wednesday filed for an initial public offering (IPO), aiming for a listing on the New York Stock Exchange.

The company, which also offers crypto-based financial services, is planning to sell shares in a range that would value Circle at up to $5 billion, according to the company's filing. It is targeting the ticker symbol CRCL.

JPMorgan Chase and Citigroup are the lead underwriters for the IPO.

Circle had previously pursued a SPAC merger with‌لارو في عام 2022, but that deal ultimately fell apart due to difficulties in obtaining the necessary regulatory approvals by the set deadline.

The move comes as several crypto firms have sought to go public through SPAC mergers or direct listings in 2021 and 2022.

Circle's IPO would make it one of the largest crypto firms to list in the U.S. After a turbulent year for the digital asset industry, several crypto firms have faced difficulties in the markets.

Earlier this year, reports indicated that Circle was aiming for a lower IPO valuation than the $6 billion to $7 billion valuation it had targeted during prior SPAC merger discussions in 2022.

The company's revenue for 2024 is $1.68 billion, which is higher than the previous year's revenue of $1.5 billion. However, its net income is $156 million, which is lower than the prior year's net income of $268 million in 2023.

Circle is best known for USD Coin (USDC), which is the second-largest stablecoin, a type of cryptocurrency that aims to maintain a stable price, typically linked to a fiat currency. USDC currently has about $60 billion in circulation.

The growing stablecoin market is a significant factor in Circle's decision to go public. It also highlights the increasing role of cryptocurrency companies in traditional financial markets.

Stablecoin legislation in the United States is expected to be passed later this year, and it is likely to propel the market even further. Circle's IPO may disrupt the crypto exchange market, especially with the cooperation of Coinbase in splitting the USDC revenue.

As stablecoins become more deeply involved in crypto trading activities, Circle's IPO could be a landmark event for the industry.