Circle Internet Group, the company behind the $USDC stablecoin, has filed to go public through an initial public offering (IPO) on the New York Stock Exchange.
The firm made the announcement on 27 May, stating it intends to trade under the ticker symbol “CRCL”. According to filings, the expected share price for the IPO will range between $24 and $26.
The crypto firm will offer 24 million shares of its Class A common stock. Out of this, 9.6 million shares will be issued directly by Circle, while 14.4 million shares will come from existing shareholders. The IPO is designed to raise up to $624 million if priced at the upper end of the range.
Circle also said it plans to grant underwriters a 30-day option to buy up to an additional 3.6 million shares to cover over-allotments.
“The offering is subject to market conditions, and there can be no assurance as to whether or when the offering may be completed, or as to the actual size or terms of the offering”, the firm said in its S-1 filing with the US Securities and Exchange Commission (SEC).
Several prominent financial institutions are backing the offering. JPMorgan, Citigroup and Goldman Sachs & Co. LLC are acting as joint lead active bookrunners. Barclays, Deutsche Bank Securities and Société Générale SA are also named as bookrunners.
The list of co-managers and junior co-managers includes BNY Capital Markets, Canaccord Genuity, Needham, Oppenheimer, Santander, AmeriVet Securities, Drexel Hamilton, Mischler Financial Group and Roberts and Ryan.
Circle’s move into public markets places it alongside Coinbase, the largest US-based crypto exchange, which went public in 2021 and recently joined the S&P 500 index.
Stablecoin market shifts as Circle seeks to expand reach
Stablecoins are a type of cryptocurrency designed to maintain a consistent value, typically by being pegged to a fiat currency such as the US Dollar.
Unlike volatile assets like Bitcoin, stablecoins like USDC are created for stability in transactions and are widely used in decentralised finance (DeFi).
USDC, issued by Circle, is pegged 1:1 to the US Dollar. It is the second-largest stablecoin in circulation, trailing only behind Tether’s $USDT. According to data from DeFiLlama, the total stablecoin market is worth approximately $2.47 billion, with USDC accounting for 25% of that and USDT commanding around 60%.
As of now, USDC has a market capitalisation of $61.5 billion, based on data from CoinGecko. Tether, meanwhile, has a significantly larger market cap of $152.7 billion.
Despite the competition, Circle is pressing ahead with its plans, aiming to secure a stronger foothold in the global financial system through its IPO.
“For Circle, becoming a publicly traded corporation on the New York Stock Exchange is a continuation of our desire to operate with the greatest transparency and accountability possible”, said the co-founder and CEO of Circle, Jeremy Allaire.
“Operating as a US-listed public company represents our continued dedication to transparency and accountability, as we will become subject to the reporting, corporate governance, and other requirements”, he added.
The firm was previously in talks to go public via a special purpose acquisition company (SPAC) merger with Concord in 2021.
The original deal aimed for a valuation of $4.5 billion, which was later revised to $9 billion. However, the SPAC agreement was eventually terminated in late 2022.
Reports have recently circulated that Circle might be a target for acquisition by either Ripple or Coinbase, two other major players in the crypto sector. Circle has publicly denied these claims.
“Despite rumours of an acquisition by Coinbase or Ripple, stablecoin issuer Circle files for an initial public offering on the New York Stock Exchange”, a crypto influencer posted on X.
Investors show interest, valuation targeted at $6.7B
Circle’s IPO has drawn attention from various sectors, including institutional investors. Among those interested is ARK Invest, led by Cathie Wood, which has indicated it could purchase up to $150 million worth of Circle shares. However, Circle has clarified that such indications are not binding.
“Because indications of interest are not binding agreements or commitments to purchase, the underwriters could determine to sell more, fewer or no shares to any of these potential purchasers, and any of these potential purchasers could determine to purchase more, fewer or no shares in this offering”, the company said in its filing.
Reuters reported that Circle is targeting a fully diluted valuation of up to $6.71 billion through this IPO.
It’s a step up from its previous SPAC valuation and reflects growing investor confidence in the infrastructure supporting digital assets, especially amid renewed interest in crypto by traditional financial institutions.
The firm also confirmed that it will not receive proceeds from the shares sold by the selling stockholders, which form the majority portion of the offering.
In a market often affected by volatility and shifting sentiment, Circle’s decision to list directly on the NYSE is viewed as a significant pivot toward broader acceptance and regulation.
Though the IPO has yet to be completed, and timing could be influenced by market conditions, the move signals increasing confidence in the future of regulated crypto businesses.
Notably, Circle’s main competitor Tether has dismissed the idea of launching its own IPO. “Tether doesn’t need to go public”, said Tether CEO, Paolo Ardoino, in an April post on X.
Founded in 2013, Circle has played a central role in the development of stablecoin infrastructure.
As regulatory frameworks evolve and institutional demand grows, the outcome of this IPO could set a precedent for other crypto-native companies looking to step into traditional capital markets.
As the industry continues to mature, Circle’s IPO will be closely watched by market participants, regulators and competitors alike. With a potential $624 million raise and a multi-billion-dollar valuation on the table, all eyes are now on “CRCL” and its debut on Wall Street.
