Circle to Disclose IPO Plans After January 2024 Filing

Circle, the issuer of the USDC stablecoin, is moving forward with its long-planned initial public offering (IPO). The planned public

Circle, the issuer of the USDC stablecoin, is moving forward with its long-planned initial public offering (IPO), according to a new report by Fortune.

The company is planning to file the necessary documents for the IPO with the Securities and Exchange Commission (SEC) later in April, the report noted, adding that JPMorgan and Citi will be acting as underwriters for the offering.

The new filing comes after Circle’s previous attempts to go public were scuttled. The company had previously planned to go public through a SPAC merger in 2021, but that deal was later terminated due to problems getting regulatory approval for the offering.

After January 2024 Filing, Circle to Disclose IPO Plans

As reported by Fortune, Circle had already filed confidentially for a traditional IPO back in January 2024, which it kept undisclosed in accordance with SEC regulations. The company is now planning to disclose the filing, which will include details of Circle’s financial performance.

The report noted that a substantial portion of Circle’s revenue is derived from interest on the USDC reserve backing. According to the latest statistics from 2023, an overwhelming 99% of Circle’s total earnings, amounting to $680 million, stemmed from its reserve-backed operations. However, this dependency raises concerns about the sustainability of Circle’s business model in the long term.

Despite earlier challenges in the year, Circle is pressing ahead with the listing of its shares. The upcoming IPO is set to value Circle at between $4 billion and $5 billion. These figures take into account the current market conditions, which are less favorable than the peak valuation of $9 billion that Circle reached in 2022.

The launch of the IPO also coincides with a period of improving performance by the IPO market after a bleak showing in the first quarter. According to Dealogic data, public listing activity within the U.S. has increased by 70% since the start of 2024, achieving a total deal value of $11.8 billion.

The organization has also experienced major corporate developments throughout multiple years. Founded in 2013 through the partnership of Jeremy Allaire and Sean Neville, the company initially pursued various business directions before settling on stablecoins in 2018.

USDC is the primary product of Circle, originally launching through the Centre consortium with Coinbase membership. The operations of USDC were later transferred to Circle following the dissolution of Centre in 2023, although Coinbase continues to hold a revenue-sharing agreement for the stablecoin.

The enterprise is a significant player in the cryptocurrency sector, especially for decentralized finance and crypto trading purposes. The value of stablecoins soared beyond $50 billion during 2022, a stark contrast to 2020 when their collective market capitalization reached only $1 billion.

USDC generates revenue for the company through investments of its reserve funds in the U.S. Treasury market and other short-term, high-grade credit instruments, according to a previous report by Coinbase. This strategy enables Treasuries to profit regularly in liquid trades, especially during periods of market stress. During Q4 of 2024, Coinbase earned $225.9 million from USDC stablecoin growth due to its relationship with the asset.

The public offering of Circle plans to set new records across crypto markets thanks to its 2021 public listing as Coinbase. The company’s plans to list on the market match recent governmental actions that promote stablecoin policies. The House will soon vote on a new stablecoin bill after the U.S. Senate Banking Committee gave initial approval in March. Former President Trump expressed support for stablecoin rules that create good conditions for businesses such as Circle.

The upcoming IPO of Circle represents a significant time for cryptocurrency businesses. The initial public offering will provide users with essential information about how strong and reliable stablecoin companies are in the long run.