Circle is working with Citi and JPMorgan Chase on the offering, following a failed SPAC attempt in 2021.
Circle, the issuer of USDC, intends to go public in the near future and wants to file for its initial public offering (IPO) in April. A number of prominent financial institutions are supposedly already in talks with the stablecoin issuer to make the deal happen.
Circle To File IPO In Late April
Fortune reports that Circle is targeting a late April IPO filing, with the listing time still up in the air. According to the report, companies typically start trading their shares four weeks after filing to become public. The timing suggests that the listing could take place in May.
On the other hand, it’s possible that the IPO process can take months. Reportedly, the stablecoin issuer is collaborating with Citi and JPMorgan Chase to finally launch its much-anticipated first public offering.
The company’s prior attempt at going public in 2021 through a SPAC plan involving a shell company was unsuccessful. In the past, the US SEC did not approve of this deal, and by the time the crypto exchange FTX went under and the crypto market as a whole took a nosedive in 2022, the business had already decided to shelve its IPO ambitions.
Just days after the stablecoin issuer teamed with the parent firm of the NYSE to examine USDC’s usage in traditional finance (TradFi), news of Circle’s IPO intentions broke.
Simultaneously, Japan’s regulator approved and launched the USDC stablecoin not long ago. Bear in mind that Japan’s stablecoin framework has only ever authorized one worldwide dollar stablecoin, and that is USDC.
An Easier Path Now For The Stablecoin Issuer
Under the present leadership of the SEC, Circle’s initial public offering (IPO) preparations are less likely to encounter opposition. Interim Chair Mark Uyeda has shown that the Commission is willing to work closely with cryptocurrency companies, unlike Gary Gensler’s administration.
Paul Atkins, who is running for chair of the US Securities and Exchange Commission, has also demonstrated a desire to alter Gensler’s administration’s stance toward cryptocurrency companies.
During his confirmation hearing, the candidate for chair of the SEC pledged to make industry-wide regulatory clarity a top priority. Circle’s initial public offering (IPO) would be the largest since Coinbase’s 2021 IPO, when it was the leading cryptocurrency exchange.
Curiously, Coinbase is a shareholder in the cryptocurrency company. At present, USDC, the firm’s stablecoin, is second in market capitalization only to USDT, Tether’s stablecoin.
As more banks consider creating their own stablecoin, competition in the market is increasing. Not only is asset manager Fidelity contemplating launching a USD 1 stablecoin, but Donald Trump’s World Liberty Financial has also recently announced plans to do so.
