Just a year after applying confidentially to a US IPO, the company behind USDC Stablecoin is officially made public.
The circle will file an S-1 with SES on Tuesday and list it on the New York Stock Exchange under the ticker symbol “CRCL.” JPMorgan Chase and Citigroup lead the underwriting. The company is reportedly targeting valuations of up to $5 billion.
This is not the first attempt by the circle to publish it. The planned SPAC merger in late 2022 collapsed after encountering regulatory headwinds. Since then, the company has shifted gears and moved its headquarters from Boston to the One World Trade Center in New York, showing a more serious push to traditional financial circles.
Circle generated $1.68 billion in revenue and reserves in 2024, up from $1.45 billion the previous year. However, net income fell from $268 million in 2023 to $156 million in 2024, CNBC reported.
Once the IPO passes, the circle becomes one of the most prominent cryptocurrency companies listed on US exchanges. Coinbase, published directly via the list in 2021, currently has a market capitalization of around $440 billion.
Circle timing is not without risk. NASDAQ has just finished its sharpest quarterly decline since 2022, with few Tech IPOs in the past three years. That said, the pipeline is beginning to show signs of activity. Klarna, Hinge Health and StubHub have all recently filed, and CoreWeave has pulled out the biggest IPO of US VC-backed high-tech companies since 2021.
Circle is best known as the issuer of USDC, the second largest stubcoin by market capitalization. With around $60 billion in circulation, USDC is behind 67% of the tethers, accounting for around 26% of the Stablecoin market. However, USDC’s growth is recovering. That market capitalization increased 36% this year, compared to Tether’s 5%.
Credit: CNBC
The broader stubcoin sector is also gaining momentum, some being helped by a more favorable political situation. The crypto industry hopes Congress will pass legislation focused on stubcoin later this year. Former President Donald Trump recently said he hopes lawmakers will get bills on their desks before the August break.
Changes in regulations could also have ripple effects on platforms like Coinbase and Robinhood. At Coinbase and Robinhood, stubble coins play a greater role in trading and cross-border transfers. Coinbase and Circle share revenues from USDC, while CEO Brian Armstrong said in a recent revenue call that there is a “stretch goal to make USDC the number one Stablecoin.”
Stablecoins have become an important part of the crypto infrastructure. Their market has grown 11% this year and 47% over the past 12 months. Analysts at Bernstein have recently called the sector within Crypto “systematically important,” pointing to how often Stablecoins are used for trading and Defi activities.
Circle’s IPO will test whether the open market is ready to wager on Stablecoins and whether crypto companies can find their footing outside the bull market.
Stablecoins like Circle’s USDC have gained popularity among crypto day traders seeking a safe shelter amid the volatility of the market. Unlike traditional cryptocurrencies such as Bitcoin and Ether, Stablecoins provide more stable value by being pinned to real-world currencies like the dollar.
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