Circle Files for IPO After Denying Ripple Acquisition Rumors

USDC stablecoin issuer Circle has finally applied for the Initial Public Offering (IPO) for listing “CRCL” stock on the New York Stock Exchange (NYSE). This development comes as the firm puts to rest the rumors of a potential acquisition by Coinbase or Ripple. Furthermore, the Circle IPO announcement comes just as the stablecoin bill, aka the GENIUS Act, is just one step away from becoming a law.

Circle IPO Confirmed: Leading Banks To Serve As Underwriters

Circle Internet, the issuer of the USDC stablecoin, announced plans to seek a valuation of up to $5.65 billion through its U.S. initial public offering (IPO). The company aims to sell approximately 9.6 million shares, while existing shareholders intend to offload an additional 14.4 million shares.

The company’s stock will trade on the New York Stock Exchange (NYSE) under the ticker “CRCL” after securing all regulatory approvals. As per the official press release, each CRCL stock will be priced between $24 and $26, with the offering expected to raise up to $624 million. Some of the top banking giants like Goldman Sachs, Citigroup, JPMorgan, and others will be bookrunners for the Circle IPO.

The Circle IPO announcement comes soon after the firm dismissed rumors of a possible Ripple buyout, rumored earlier. Moreover, the deal didn’t go through as Ripple’s bid proved to be very low or insufficient for the stablecoin firm. Decentralized prediction market Polymarket puts the odds of approval at 90%, jumping from 70% 24 hours before.

Stablecoin Market To See Growing Competition

In recent weeks, US lawmakers have been actively pursuing to pass the stablecoin bill, aka the GENIUS Act, to bring official legislation for USD-pegged digital assets. Some of the top crypto firms, like Coinbase and Ripple, are looking to grab some market share. A recent survey by Citigroup stated that the stablecoin market size could grow to $1.6 trillion by 2030.

With USDC, Circle is currently the second biggest player in this space after Tether. The Circle IPO, and the incoming capital injection may see the USDC issuer close the gap between it and Tether.

However, established players like Ripple have recently launched their RLUSD stablecoin, which has already attained more than $300 million market cap. On the other hand, big Wall Street banks are exploring a joint stablecoin collaboration, which could pose risks to already existing players, per Arthur Hayes.

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Bhushan Akolkar

Bhushan is a FinTech enthusiast with a keen understanding of financial markets. His interest in economics and finance has led him to focus on emerging Blockchain technology and cryptocurrency markets. He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.