Circle Internet Financial Moves Forward With IPO Plans After Previous Failure

Circle Internet Financial, the issuer of the second-largest stablecoin, USDC, is advancing its long-planned initial public offering (IPO) by hiring JPMorgan Chase and Citi as underwriters.

Circle Internet Financial, the issuer of the second largest stablecoin, USDC, is advancing its long-planned initial public offering (IPO) by hiring JPMorgan Chase and Citi as underwriters, according to a recent report by Fortune.

The fintech company is expected to file its offering paperwork by the end of April and could be valued at $4 billion to $5 billion, the report notes. The timing of the IPO depends on several factors, but companies that file for an IPO typically see their shares begin trading about four weeks later. However, some firms may remain in registration for months before launching their offerings.

This would mark Circle’s second attempt at going public. Back in 2021, the company announced plans to merge with a special purpose acquisition company (SPAC) backed by an investment firm. However, regulatory complications arose when the U.S. Securities and Exchange Commission (SEC) did not approve the proposed merger, which was later extended several times.

Circle eventually abandoned the SPAC plans at the end of 2022 following the collapse of FTX and a broader crypto market downturn. In 2024, the stablecoin issuer filed confidentially with the SEC for a traditional IPO, which is now reportedly nearing public disclosure.

The impending public filing will provide a deeper look into Circle’s financial health for the first time, as well as reveal the company’s planned ticker symbol and pave the way for a public listing of its shares.

If successful, Circle’s IPO would be the largest cryptocurrency-related IPO since Coinbase went public in 2021 via a direct listing, with JPMorgan and Citi also serving as financial advisors for Coinbase.

The report also mentions that Circle has undergone several transformations throughout the years. The company initially started with various business lines focused on payments and crypto trading around 2018, gradually shifting its attention to stablecoins.

Its flagship product, the USD Coin (USDC) stablecoin, was initially envisioned as a consortium among financial firms through an organization called Centre, though it ultimately became mainly tied to Coinbase. In 2023, Centre was dissolved and both companies restructured their partnership to manage USDC, allowing Coinbase to continue receiving a significant share of the stablecoin’s revenue.

USDC rose to prominence during the crypto boom of 2021, with its market capitalization soaring from less than $1 billion in 2020 to over $50 billion in 2022, benefitting from the interest in the dollar-backed assets supporting USDC, including U.S. Treasuries.

However, the company faced notable challenges, particularly in March 2023 when it disclosed that $3.3 billion was frozen at Silicon Valley Bank, causing USDC to deviate briefly from its $1 peg on secondary trading platforms.

By the end of 2023, USDC’s market capitalization dropped to under $25 billion but has since rebounded to around $60 billion. Tether on the other hand, issuer of the market’s largest stablecoin, USDT, boasts a market capitalization of $143 billion according to CoinmarketCap data.

The advancement of stablecoin legislation in Congress could also serve as a bullish indicator for Circle, with the Senate Banking Committee recently moving forward with a bill and the House expected to vote on its version soon.

The now pro-crypto President, Donald Trump, has also expressed a desire to sign stablecoin legislation by August of this year, signaling potential regulatory support for the industry.