USDC Connoisseur Circle is reportedly in talks about going public by early 2024, according to a report by Bloomberg citing anonymous sources. The stablecoin issuer has engaged consultants for a potential IPO, although the exact valuation it seeks remains unclear. This marks Circle’s third attempt at going public; in 2022, the company pursued an IPO with a valuation of $9 billion through a blank check deal. Prior to that, in 2021, Circle’s deal with a Special Purpose Acquisition Company named Concord Acquisition Corp. fell through.
The recent development has reignited speculation about Circle’s long-standing goal of becoming a U.S.-listed public company. However, a spokesperson for Circle denied the rumors, emphasizing that the company’s pursuit of an IPO has never wavered. Circle’s investors include major financial players such as Goldman Sachs, Fidelity, and Blackrock.
The USDC stablecoin, initially boasting a market cap near $56 billion, experienced a significant decline in June 2022. Circle faced challenges earlier this year when it revealed a $3.3 billion exposure to the collapsed Silicon Valley Bank, leading to a brief depeg of USD Coin. Despite these challenges, Circle plans to share financial reports regularly and has enlisted Deloitte as its auditor.
USDC is a cryptocurrency pegged to the U.S. dollar and backed by reserves provided by clients to Coinbase and Circle in exchange for newly created USDC. Coinbase and Circle generate interest income on these reserves, with Coinbase benefiting directly from higher interest rates.
Circle has also focused its efforts on Asia, recognizing the potential for stablecoins to play a role in the region’s evolving payment ecosystem. Yam Ki Chan, Circle’s vice president for strategy and policy, highlighted Asia as a natural market for the company due to the growing web3 business and the broader web3 ecosystem. USDC, launched in 2018 on the Ethereum blockchain, has expanded its reach to multiple blockchain platforms, including Algorand, Solana, and Tron.
The creation of USDC was a collaborative effort between Circle and Coinbase, forming the Centre Consortium with the goal of providing a transparent and regulated alternative to other stablecoins, particularly Tether [USDT].