Circle, the Company Behind USDC, Is Making Another Attempt to Go Public

After its SPAC deal with Concord Acquisition Corp fell through in December 2022, Circle is taking the direct IPO route

Circle, the company behind the widely used USD Coin (USDC) stablecoin, is reportedly making another attempt to go public, this time aiming for a valuation between $4 billion and $5 billion, according to two people familiar with the matter.

The firm is planning to take the direct IPO route, enlisting the services of financial giants JPMorgan Chase and Citi to act as underwriters for the offering, the people said. The company is expected to file for the IPO by late April 2025, merging its Class A common stock units with the Class A common stock, to be listed on a major U.S. stock exchange.

Earlier in 2021, Circle had set its sights on public markets through a merger with Concord Acquisition Corp, a special-purpose acquisition company (SPAC). The deal was initially pegged at a $9 billion valuation, later reduced to $4.5 billion due to market conditions and regulatory hurdles. Ultimately, Circle abandoned the SPAC deal in December 2022.

Despite the setbacks, Circle appears to be approaching the IPO with renewed optimism and a pragmatic strategy. The company is now based in New York City, having moved from Boston, which could help it gain favor with traditional investors.

Moreover, Circle's role as the issuer of USDC, the second-largest stablecoin with a market cap of around $60 billion, makes it a dominant force in the crypto ecosystem. USDC is used widely for payments, remittances, and decentralized finance (DeFi), rendering it a key pillar of digital finance.

With apex US regulatory bodies like the U.S. Securities and

Circle is planning to go public again, aiming for a valuation of $4 billion to $5 billion and enlisting JPMorgan and Citi to help with the offering, two people familiar with the matter said.

The company, which is best known for its USD Coin (USDC) stablecoin, is planning to take the direct IPO route, in contrast to its previous attempt via a SPAC merger. It will be applying to list the Class A common stock units of the company, merging them with the Class A common stock, to be listed on a major U.S. stock exchange. The filing for the IPO is expected by late April 2025.

Earlier in 2021, Circle had set its sights on public markets through a merger with Concord Acquisition Corp (CIII.N), a special-purpose acquisition company (SPAC). The deal was initially pegged at a $9 billion valuation, later reduced to $4.5 billion due to market conditions and regulatory hurdles. Ultimately, Circle abandoned the SPAC deal in December 2022.

However, despite the setbacks, Circle appears to be approaching the IPO with renewed optimism and a pragmatic strategy. The company has since moved its headquarters from Boston to New York City, which could be a crucial factor in securing the support of traditional investors.

Moreover, Circle's role as the issuer of USDC, the second-largest stablecoin with a market cap of around $60 billion, makes it a dominant force in the crypto ecosystem. USDC is used widely for payments, remittances, and decentralized finance (DeFi), rendering it a key pillar of digital finance.

However, the company will be faced with a changed market landscape. When Coinbase (COIN.O) went public in 2021, it was valued at a staggering $86 billion at the peak of the bull market. In comparison, Circle's valuation at the time of its SPAC deal was $4.5 billion, later lowered to $3.2 billion.

Furthermore, the climate of regulation has shifted significantly. With the U.S. Securities and Exchange Commission (SEC) now keeping a closer eye on crypto, especially stablecoins, Circle's ability to comply with regulations could be make or break for its IPO. The SEC's unpredictable stance on crypto-related securities also poses a major risk factor.

If successful, Circle's IPO could provide the company with substantial capital to expand operations, develop new products, and cement its position as a leader in digital assets. A strong market debut would also serve as a confidence boost for the broader crypto industry, potentially encouraging other blockchain-focused firms to go public.

However, failure could deal another blow to investor sentiment, reinforcing the belief that crypto companies face insurmountable regulatory and market challenges. The coming months will reveal whether Circle can pull off one of the most anticipated IPOs in the digital asset space or if history will repeat itself.