Circle, the company behind the $USDC stablecoin, has filed for an initial public offering (IPO) with the US Securities and Exchange Commission (SEC).
This means Circle is planning to sell shares to the public and trade on the New York Stock Exchange (NYSE) under the ticker symbol “CRCL”.
This is the company’s second attempt at going public after an earlier effort failed in 2021. The decision to go public comes at a time when stablecoin regulations in the US are changing.
Circle is seeking a lower valuation of between $4 billion and $5 billion, a significant drop from the $9 billion it was aiming for in its previous attempt.
Circle’s official SEC filing, known as the S-1 registration, confirms that two major financial institutions, JPMorgan Chase and Citigroup, will underwrite the IPO. This means these banks will help Circle sell its shares and bring investors on board.
This IPO is an important move for Circle. It is a chance for the company to raise funds, expand its business, and gain credibility in traditional finance. However, this is not Circle’s first attempt.
The company tried to go public in 2021 through a merger with a special-purpose acquisition company (SPAC). That plan was eventually dropped in late 2022 due to regulatory delays and the collapse of the cryptocurrency exchange FTX.
Now, with more attention on stablecoins from lawmakers and regulators, Circle hopes this second attempt will succeed. The company’s decision to lower its expected valuation reflects the reality of the market.
“As we move forward with our IPO plans, we are excited about the valuation and growth potential of our platform”, said Circle’s co-founder and CEO, Jeremy Allaire.
Despite the lower valuation, Circle has been growing financially. In 2024, the company generated $1.7 billion in revenue and reserve income.
However, its net income (profit after expenses) was $156 million, which is lower than the $268 million it earned in 2023.
The IPO will involve selling both new shares issued by Circle and shares from existing investors.
The role of USDC and market impact
Circle’s stablecoin, $USDC, plays a key role in the cryptocurrency market. A stablecoin is a type of digital currency designed to maintain a steady value, often by being backed by reserves like cash or government bonds. $USDC is pegged to the US dollar and trades at a stable price of $1.00.
Currently, $USDC has a market capitalisation of $60 billion, making it the second-largest stablecoin after Tether’s $USDT, which has a much larger market cap of $143 billion. However, $USDC’s 24-hour trading volume has fallen by 21.68%, reflecting some market fluctuations.
According to researchers at Coincu, Circle’s IPO could cause financial shifts, especially if new regulations for stablecoins are introduced. If lawmakers provide clearer rules for stablecoins, it could increase investor confidence and impact how these digital assets are used in the broader economy.
“Operating as a US-listed public company represents our continued dedication to transparency and accountability. We will become subject to the reporting, corporate governance, and other requirements that are applicable to a public company listed on the New York Stock Exchange”, said Allaire.
Circle has faced challenges with $USDC in the past. In 2023, the stablecoin temporarily lost its peg to the dollar when Silicon Valley Bank collapsed.
At the time, $3.3 billion of Circle’s reserves were locked up in the failed bank. However, $USDC has since recovered and remains a major player in the stablecoin market.
Regulatory landscape
Circle’s IPO comes at a time when the US government is focusing more on stablecoin regulations.
Recently, the House of Representatives released the full text of the 2025 STABLE Act, which aims to provide clearer guidelines for stablecoins. The Senate is also working on a similar bill.
Former US President Donald Trump has supported stablecoin regulations, arguing that they can help strengthen the country’s financial system and keep the US dollar dominant in global markets.
Trump’s administration has backed stablecoins, and the White House has even been involved in projects related to digital currencies.
Circle’s financial records show that the company earns most of its revenue—more than 99%—from interest on stablecoin reserves.
The company holds a large amount of US Treasury securities, which generate returns. However, it also faces high costs.
In 2024, Circle paid nearly $908 million to Coinbase, its main distribution partner, to circulate $USDC on its crypto exchange. This means that Coinbase is earning more money from $USDC than Circle itself.
“The high costs partly explain why Circle’s revenue increased while its EBITDA (earnings before interest, taxes, depreciation, and amortisation) and net income fell in 2024”, explained the Head of Digital Asset Research at VanEck, Matthew Sigel.
Aside from the US, Circle is expanding internationally. In March 2024, it became the first stablecoin issuer to receive regulatory approval in Japan.
$USDC was launched on the SBI VC Trade crypto exchange, showing the company’s growing global presence.
If the IPO is approved, Circle will join other publicly traded cryptocurrency firms like Coinbase and Block Inc. on Wall Street.
This could be a major milestone for stablecoin companies. However, the broader market for tech and crypto stocks has been volatile, which could make things uncertain for Circle’s stock once it starts trading.
Circle’s decision to go public is a big step for the stablecoin industry. The company has had a strong financial performance, but its profits have declined due to high operating costs.
With $USDC’s solid market position and increasing regulatory clarity in the US, Circle hopes that this IPO will be more successful than its previous attempt. However, the stock market and crypto regulations will play a key role in shaping the outcome.
If approved, this IPO could bring Circle closer to traditional finance while also influencing the future of stablecoins.
