Boston-based Circle Internet Financial, custodians of the USDC stablecoin, has commenced a confidential filing for an initial public offering (IPO) in the United States.
This move represents a the company's intent to become a publicly traded entity.
Circle plays a pivotal role in the issuance and governance of USDC, a digital currency pegged to the U.S. dollar.
Stablecoins like Circle's USDC offers stability within the volatile cryptocurrency landscape.
When Will Circle IPO Launch?
The timing of Circle's IPO hinges on the completion of the review process by the Securities and Exchange Commission, coupled with prevailing market conditions.
This development follows the company's decision to retract its previous plan of going public through a special-purpose acquisition company in 2022, a deal valued at $9 billion.
USDC, the second-largest stablecoin after Tether, holds the seventh position in the overall cryptocurrency market, according to CoinGecko.
This digital token, backed by cash and cash equivalents, including short-term Treasury bonds, plays a crucial role in the crypto ecosystem.
Although USDC's circulation has decreased from its peak, it remains a key player, with approximately $25 billion in active tokens.
Furthermore, the broader crypto industry experienced a downturn in 2022, leading to cautious investor sentiment and the decline of several high-profile crypto firms, such as FTX.
In response, Circle streamlined its operations, focusing on core business areas.
Circle's Growing Presence
In December, the Autorité des Marchés Financiers (AMF) of France granted conditional registration to Circle as a Digital Asset Service Provider (DASP).
This approval is anticipated to have an impact on the broader European market, especially in light of the forthcoming Markets in Crypto Assets (MiCA) regulation.