Stablecoin Issuer Circle Plans to Go Public, Files Confidentially With US Securities Regulator
Circle Internet Financial, a fintech company and issuer of the stablecoin usd coin, has disclosed its move toward an initial public offering (IPO). The firm revealed that it has confidentially submitted a Form S-1 with the U.S. Securities and Exchange Commission (SEC). This strategic step by Circle comes just a day after the SEC authorized 11 spot bitcoin exchange-traded funds.
Circle Eyes IPO, Submits Confidential Filing to SEC Following Approval of Bitcoin ETFs
Founded in October 2013 by Jeremy Allaire and Sean Neville, Circle is on the path to becoming a publicly traded entity. The company made this public through a recent press release on Thursday, announcing its submission of a confidential Form S-1 to the SEC. As of now, the specific details regarding the quantity of shares and their pricing for the upcoming offering are still under consideration.
“The initial public offering is expected to take place after the SEC completes its review process, subject to market and other conditions,” Circle disclosed on Thursday.
Since its establishment, the company has successfully garnered $950 million in total funding from prominent investors such as Fidelity, Marshall Wace LLP, and Blackrock. Circle’s aspirations to become a publicly-listed entity have been longstanding, and the firm nearly achieved this goal through a special purpose acquisition company (SPAC) transaction in 2021. This potential deal, backed by Barclays Capital’s Bob Diamond, had an estimated value of $4.5 billion. However, the arrangement ultimately did not come to fruition.
Circle, known as the issuer of the usd coin (USDC) – the second largest stablecoin by market capitalization – currently manages 25.20 billion USDC in circulation. Over the recent 30 days, the supply of USDC has witnessed a growth of 4.7%. Despite this recent growth, USDC’s overall supply has significantly contracted in the past year. The stablecoin experienced a notable depegging event in March 2023, coinciding with the collapse of Silicon Valley Bank. Now, Circle is taking a path similar to Coinbase, which made its public debut on April 14, 2021, via a direct listing on the Nasdaq exchange.
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