USDC Issuer Circle Supercharges IPO to $1B as BlackRock Backs Stablecoin Play
Circle's upsized $1B offering values the USDC stablecoin company at $7.2 billion, positioning it to capitalize on regulatory tailwinds that favor transparency over Tether's market-leading but opaque USDT.
Challenging Tether's Throne
Circle, the issuer of the USD Coin (USDC) and Euro Coin (EURC) stablecoins, announced the pricing of its Initial Public Offering (IPO) in a press release earlier today. The offering was priced at $31.00 per share, with 34 million shares offered, resulting in a total offering size of $1.054 billion, up from initial targets of raising up to $624 million from the sale of 24 million shares.
The IPO, which follows a previous SPAC attempt that fell through, values Circle at $7.2 billion. The company's shares are set to trade on the New York Stock Exchange (NYSE) under the ticker CRCL when US markets open on Thursday.
While a direct post-IPO market capitalization for Circle is contingent on public trading, the successful execution of its $1.054 billion offering suggests a strong initial valuation. On its direct listing day in April 2021, Coinbase Global (COIN) shares began trading at $381, almost 50% higher than its reference pricing of $250.
Significant institutional interest has been reported, with BlackRock, the world's largest asset manager, reportedly intending to acquire approximately 10% of the total offered shares and Ark Invest, led by Cathie Wood, indicating interest in purchasing up to $150 million worth of shares.
Challenging Tether's Throne
Despite USDC's smaller market share, Circle's public listing positions the company to directly challenge Tether's longstanding dominance in the stablecoin market. According to data from Allium, Tether's USDT commands approximately 70% of the $153.4 billion USD-pegged stablecoin market, but has faced persistent questions about reserve transparency and regulatory compliance—areas where Circle has positioned itself as the compliant alternative.
Circle's emphasis on regulatory adherence and monthly attestations of its reserves contrasts sharply with Tether's historically opaque approach. This positioning has already attracted institutional clients seeking regulatory-compliant stablecoin exposure, including major corporations and financial institutions that have shied away from USDT due to compliance concerns.
The IPO proceeds could accelerate Circle's market share gains by funding expanded global operations, enhanced compliance infrastructure, and strategic partnerships with traditional financial institutions. Public company status also brings additional oversight and transparency requirements that may appeal to institutional users prioritizing regulatory compliance.