What happened?
As the issuer of the second-largest stablecoin USDC, Circle has officially initiated its IPO process on the New York Stock Exchange (NYSE), aiming to raise over $570 million with a target valuation of $6.7 billion. This is not only an important milestone for Circle's development but also represents that the cryptocurrency industry, especially stablecoins, is actively integrating into traditional financial markets, pursuing higher transparency and compliance.
Circle CEO Jeremy Allaire emphasized that going public is aimed at pursuing 'maximum transparency and accountability,' accepting the strict regulatory requirements for U.S. publicly traded companies. This stands in stark contrast to Tether (USDT issuer) CEO Paolo Ardoino's statement that 'Tether does not need to go public.' This reflects significant differences in corporate development strategies and attitudes toward the public market between the two major stablecoin issuers.
As the regulatory framework for stablecoins in the U.S. becomes increasingly clear, Circle's IPO is expected to enhance the market recognition and application scope of stablecoins.
Circle officially initiates its IPO procedure, aiming for a valuation of up to $6.7 billion.
The issuer of stablecoin USDC, Circle, officially initiated its initial public offering (IPO) procedure on May 27, planning to issue 24 million Class A common shares and apply for listing on the New York Stock Exchange (NYSE) under the ticker symbol CRCL. This IPO is expected to raise approximately $576 million to $624 million in funding, aiming for a valuation of up to $6.71 billion.
The so-called Class A common stock is one type of stock issued by a company, typically having higher voting rights compared to other common stocks issued by the company (such as Class B or Class C common stocks). The main reason a company does this is to ensure that its founders or management can maintain control over the company after it goes public, even if shares are sold to the public, ensuring that decision-making power is not easily diluted.
Circle stated that 9.6 million Class A common shares will be issued by the company in this offering, with the remaining 14.4 million shares sold by existing shareholders. Additionally, underwriters will have a 30-day option to purchase up to 3.6 million additional Class A common shares to cover over-allotments.
In simple terms, the stock source for Circle's IPO will partly come from the company's new share issuance for fundraising and partly from existing shareholders cashing out, while underwriters will have the flexibility to adjust stock supply after listing to stabilize market prices.
This IPO has attracted participation from several major U.S. investment banks, including JPMorgan, Citigroup, and Goldman Sachs serving as joint lead underwriters. European banks such as Barclays, Deutsche Bank Securities, and Société Générale will also serve as underwriters.
According to the prospectus, Circle expects the IPO stock price to range between $24 and $26 per share. Although Circle will not receive any income from the Class A common shares sold by existing shareholders, the progress of its IPO is still affected by market conditions.
Notably, prominent investors in the cryptocurrency space, such as Cathie Wood's ARK Invest, have expressed interest in purchasing up to $150 million in IPO shares.
Stablecoin leader Circle knocks on Wall Street's door: Can the USDC listing tide lead to a new compliant landscape in the crypto space?
Founded in 2013, Circle is a key player in the cryptocurrency industry, known for issuing the world's second-largest stablecoin, USDC. As of now, USDC has a market cap of approximately $61.5 billion, although it still lags behind its main competitor Tether's USDT (with a market cap of about $152.7 billion), but this year, USDC's market cap has grown by 40%, exceeding Tether's 10% growth.
Circle co-founder and CEO Jeremy Allaire stated in his S-1 filing letter that Circle chose to list on the New York Stock Exchange because they believe it allows the company to achieve the highest standards of transparency and responsibility. After going public, the company will be required to comply with strict reporting and governance requirements from U.S. regulatory agencies (particularly the SEC), and Circle is willing to accept these challenges and views them as an important step in fulfilling its commitment to 'public transparency and responsible operations.'
Although Tether currently dominates the stablecoin market, its CEO Paolo Ardoino stated in April on the X platform that Tether does not need to go public.
This Circle IPO may also have significant investment implications for Coinbase.
As a co-founder and major distribution channel for USDC, Coinbase has signed a 50% revenue-sharing agreement with Circle and earns a portion of the interest generated from the USDC products on the Coinbase platform. Coinbase CEO Brian Armstrong has stated that developing USDC into the world's largest stablecoin is a 'lofty goal' for Coinbase.
Stablecoins are primarily used for transactions and as collateral in decentralized finance (DeFi), and cryptocurrency investors closely monitor them to gauge market demand, liquidity, and activity. Recently, stablecoins have become increasingly popular among banks and fintech companies due to their ability to transfer dollars across borders quickly and cheaply. Furthermore, there are growing assertions that stablecoins help maintain the dollar's dominance, as they can extend the dollar's usability internationally and ensure demand for U.S. government debt, which underpins nearly all dollar-denominated stablecoins.
With the U.S. Congress expected to pass and implement its first cryptocurrency legislation targeting stablecoins this year, the development momentum in the stablecoin sector is strong. Last week, the Senate voted to advance the first cryptocurrency bill to establish a regulatory framework for stablecoins. U.S. President Trump also stated that he hopes to send the cryptocurrency regulatory bill to his desk for signing before the August recess.
References: cointelegraph, cnbc
More reports
The stablecoin bill GENIUS Act voted through, which crypto assets will benefit from this?
The bull market isn't over yet? Tether's Q1 2025 financial report shines: net profit exceeds $1 billion.
