Circle Aims for $4B-$5B Valuation in IPO, Marking Crypto's Return to Public Markets
1min read Circle, the issuer of the USD Coin (USDC) stablecoin, has made a significant move towards going public by hiring banks to lead its initial public offering (IPO). The company is expected to publicly file its IPO application by late April, marking a return to the public markets after a failed attempt in 2021. Circle had previously tried to list via a merger with a special purpose acquisition company (SPAC), but the deal collapsed in late 2022 due to increased regulatory scrutiny and unfavorable market conditions following the implosion of FTX.
Circle's IPO plans come at a time when the US IPO landscape is showing signs of recovery. The company is reportedly seeking a valuation of $4 billion to $5 billion, significantly lower than the $9 billion valuation from its failed SPAC deal. The exact timeline for the listing remains uncertain, but a public filing would reveal the company’s financial performance and proposed ticker for the first time.
Ask Aime: What is Circle's IPO strategy and potential valuation?
USDC has become a key player in the crypto ecosystem, widely used for payments, trading, and decentralized applications. After peaking above $50 billion in market cap in 2022, usdc saw a sharp drop following the Silicon Valley Bank crisis in early 2023, when $3.3 billion of Circle’s reserves were briefly inaccessible. The stablecoin temporarily lost its dollar peg but quickly recovered after federal intervention. As of March, USDC’s market cap has reached a new high near $60 billion. Still, Circle faces questions about the breadth of its revenue streams. According to unaudited financial figures seen by industry sources, nearly all of the company’s income in early 2023 came from interest on reserve assets, such as US Treasuries and cash equivalents.
Circle's latest valuation target is reportedly in the range of $4 billion to $5 billion, down from the $9 billion valuation set during its abandoned SPAC deal. The company is working with jpmorgan and Citi to lead the IPO, which could become one of the biggest crypto listings since coinbase. The offering comes as the US IPO landscape shows signs of recovery, with public listings on American exchanges up significantly compared to last year. Circle may also benefit from growing political momentum around stablecoin regulation, with legislation advancing in both the Senate and the House.
However, Circle will not be alone in the market. Competing stablecoins have launched from traditional financial firms and crypto companies alike, including offerings from paypal and Ripple. The company's move to go public positions USDC for future growth amid expanding global markets and increasing regulatory clarity.
