Reuters: USDC issuer Circle quietly applies for US IPO

After experiencing a series of ups and downs in the cryptocurrency industry, Circle Internet Financial, the driving force behind the well-known stablecoin USDC, made a significant move on January 11, 2024, by revealing that it has confidentially filed for a U.S. initial public offering (IPO), taking a crucial step towards becoming a publicly traded company.

Is Circle sensing the bull market and gearing up for another IPO listing?

The Path to IPO for Circle

Circle announced on January 11 that as part of its plans to become a public company, the company has filed for an IPO with the U.S. Securities and Exchange Commission (SEC). However, the company has not disclosed the number of shares it plans to sell or the proposed price range for its new IPO application.

Based in Boston, the company controls the issuance and governance of the USDC stablecoin, a cryptocurrency pegged to the U.S. dollar.

USDC: Key Player in the Stablecoin Market

USDC is the second largest stablecoin in the market, following Tether, and is the seventh largest currency in the overall cryptocurrency market.

Currently, there are approximately $25 billion USDC tokens in circulation, a decrease from the peak of $56 billion in mid-2022.

Fluctuations in the Cryptocurrency Industry

In 2022, the cryptocurrency industry experienced a downturn after rapid growth, with token prices becoming more cautious as investors, and several prominent cryptocurrency companies closed, including the cryptocurrency exchange FTX.

In July 2023, Circle announced layoffs and stated that it had ended investments in non-core business areas.

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Pursuing an IPO Amid Market Turmoil

Circle's move to go public comes after prolonged low trading activity, with the market facing high interest rates and market volatility. Clearing firm Apex Fintech submitted a U.S. IPO application in December. Aspen Insurance, owned by Apollo, also indicated it is considering a public offering in 2024.

Prior to this, Circle had stated in 2022 that through a special purpose acquisition company (SPAC) public listing transaction, the company's valuation reached $9 billion. However, the company terminated the deal in December 2022. Circle's CEO Jeremy Allaire expressed disappointment at the "running out of time" for the proposed transaction but stated the company still plans to go public.

This news reflects the adaptation and growth of the cryptocurrency industry in uncertainty, especially for Circle, the leader in the stablecoin market. Its IPO move suggests a potential new chapter for the entire industry.