Circle Set to Launch IPO by Late April, Reports Reveal

Circle Internet Financial, the issuer behind the popular stablecoin USDC, is preparing for its long-awaited initial public offering (IPO), which is expected to be filed in late April, according to reports. The fintech company has enlisted JPMorgan Chase and Citi to help facilitate the IPO process. Once filed, shares could begin trading within a few weeks, although the regulatory approval process could affect the timeline.

This IPO marks a significant milestone for the crypto industry, as it would be the largest public offering since Coinbase’s direct listing in 2021. JPMorgan and Citi also played key advisory roles in Coinbase’s listing, further solidifying their involvement in this space.

Circle had previously tried to go public in 2021 through a SPAC (Special Purpose Acquisition Company) merger. However, regulatory delays from the U.S. Securities and Exchange Commission (SEC) halted those plans. The situation worsened in late 2022, as the collapse of crypto exchange FTX and the broader downturn in the digital assets market led to the abandonment of the SPAC deal. In January 2024, Circle confidentially filed for a traditional IPO, and its upcoming public filing will reveal more details about the company’s financials and its proposed ticker symbol.

Founded in 2013 by Jeremy Allaire and Sean Neville, Circle originally focused on payments and cryptocurrency trading. However, in 2018, the company pivoted to stablecoins, with its flagship product, USDC, playing a central role in the ecosystem. Initially governed by a consortium that included Coinbase, USDC has become a critical player in decentralized finance (DeFi) and trading markets. Coinbase now earns substantial revenue from USDC, reportedly reaching $225.9 million in Q4 2024.

USDC’s market capitalization experienced rapid growth, rising from under $1 billion in 2020 to over $50 billion in 2022, driven largely by its adoption in DeFi. Despite facing challenges, including a liquidity scare in 2023 when $3.3 billion of its reserves were stuck at Silicon Valley Bank, USDC managed to recover its $1 peg and saw its market cap rebound from a low of under $25 billion to around $60 billion today.

However, Circle is not without competition. Financial giants such as PayPal and Fidelity are entering the stablecoin market, intensifying the competition. Additionally, the regulatory landscape is evolving. In March 2024, the Senate Banking Committee approved stablecoin legislation, with the House expected to vote on it in April. Former President Donald Trump has also expressed support for stablecoin regulation, with hopes of signing a bill by August.

With improving market conditions and the potential for greater regulatory clarity, Circle is hoping its second attempt at an IPO will allow it to secure its place as a public company, marking a major milestone in the broader cryptocurrency and fintech sectors.