Circle Moves Closer to IPO with Banking Giants

Story Highlights

• Circle advances IPO plans with JPMorgan and Citi as underwriters.

• Company to publicly disclose IPO details after secret January 2024 filing.

• Public listing follows rising IPO activity, up 70% since 2024.

Circle, the issuer of the USDC stablecoin, is moving forward with its long-planned initial public offering (IPO). The planned public filing for IPO documents takes place during late April of this year while JPMorgan and Citi work as underwriters for the company. Circle has tried to go public twice with its second effort following a 2021 SPAC merger termination because of regulatory problems.

Circle to Disclose IPO Plans After January 2024 Filing

According to Fortune, Circle made an original filing for a traditional IPO in January 2024, which it maintained as undisclosed information. The company plans to reveal its financial performance, which shows its strong dependency on interest from the USDC reserve backing. The latest statistics from 2023 show that 99% of Circle’s total earnings originated from its reserve-backed operations, although it raises doubts about its business model’s sustainability.

Circle continues working toward the future listing of its shares despite previous market challenges. The upcoming IPO will assess the company’s worth between $4 billion and $5 billion. The current market conditions support this valuation, which stands lower than the peak $9 billion mark the company reached in 2022. The IPO launch by Circle takes advantage of the rising IPO market performance after past performance indicators forecast a strong recovery. The public listing activity within the U.S. rose 70% since 2024 and achieved a total deal value of $11.8 billion.

The organization has experienced major corporate developments throughout multiple years. The company began operations in 2013 through the partnership of Jeremy Allaire and Sean Neville, who first pursued various business directions until they settled on stablecoins in 2018. USDC stands as the primary product of Circle because it originally launched through the Centre consortium with Coinbase membership. USDC operations transitioned to Circle following the dissolution of Centre in 2023, but the company maintains its revenue-sharing agreement with Coinbase.

Circle IPO to Set New Records in Crypto Markets

The cryptocurrency sector depends heavily on USDC for its operations, especially when used in decentralized finance and crypto trading purposes. The value of stablecoins flew up beyond $50 billion during 2022 because their market capitalization exceeded $1 billion in 2020. USDC generates revenue for the company through investments of its reserve funds in the U.S.  The strategy made Treasuries profit regularly in executable trades. 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 will 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.

Circle’s upcoming IPO 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.