Circle’s IPO Set to Reshape Global Stablecoin Market and Crypto Regulation

Key Takeaways

• Circle’s move to go public signals a pivotal moment for the company and the broader stablecoin system.
• The USDC backer was valued at $7.7 billion in 2022 and is now seeking a valuation of up to $5 billion for its IPO.
• Circle’s IPO could help USDC challenge Tether’s dominance in the stablecoin market, which currently holds around 70% of the market share.

Circle is making its long-anticipated move to go public, filing for an IPO that could reshape the stablecoin market.

As a major competitor to Tether, Circle’s USDC token has seen growing adoption, and the IPO positions the company to strengthen its presence in crypto and traditional finance.

With strong financials and a more transparent, regulated structure, Circle aims to challenge rivals and lead the way in the evolving digital dollar environment.

Circle Files to Go Public

Circle Internet Group Inc. has filed for its long-awaited initial public offering, highlighting steady revenue growth.

According to a filing with the U.S. Securities and Exchange Commission (SEC), the stablecoin provider reported a net income of $156 million on $1.68 billion in revenue in 2024, compared to a net income of $268 million on $1.45 billion in 2023.

CEO Jeremy Allaire explained that going public is a significant moment for Circle, but not only for it. He thinks the IPO will help the broader development of the Internet financial system.

He acknowledged that while the company is confident about its prospects, it also faces uncertainties and risks.

Details of Circle‘s share sale, including the proposed price range and the number of shares to be sold by the company and its investors, will be disclosed in a later filing once the underwriters are ready to begin marketing the offering.

How Much Is Circle Worth?

Based on data from PitchBook , Circle was valued at $7.7 billion in 2022 following a funding round.

The company had already filed confidentially for a public listing in early 2024, more than a year after abandoning plans to go public through a merger with a blank-check company, which would have valued Circle at $9 billion.

Circle’s USDC surpassed 60 billion in circulation last week, setting a new all-time high. The surge reflects growing demand for the second-largest stablecoin as it expands its presence in decentralized finance (DeFi) and traditional financial sectors.

However, Circle faced challenges in 2023 when Silicon Valley Bank, where it held some of its reserves, collapsed. Although Circle eventually recovered its deposits, the crisis impacted its market capitalization, which took several months to bounce back.

Circle’s largest shareholders include prominent firms such as Accel, Breyer Capital, General Catalyst, IDG Capital, Oak Investment Partners, and FMR. Circle will trade on the New York Stock Exchange under the ticker symbol CRCL.

Reshaping Stablecoin Market and Crypto Regulation

Circle’s upcoming public listing may heighten competition among U.S. dollar stablecoin issuers. In partnership with Paxos, PayPal recently launched its stablecoin, PYUSD, signaling that FinTech giants increasingly view stablecoins as strategic for payments.

However, PayPal’s stablecoin is still tiny. However, its vast user base of 400 million and 20 million merchants could drive rapid adoption.

Circle’s IPO will position it in direct competition with PayPal as a highly regulated, publicly visible entity competing to offer the most trusted digital dollar.

The IPO may also strengthen Circle’s capital position, allowing it to provide improved services to institutional clients, such as APIs, custody solutions, and insurance.

Circle tapped JPMorgan Chase and Citigroup to lead the IPO, both of which helped Coinbase with its 2021 debut. Internationally, Circle’s IPO will allow USDC to more aggressively challenge Tether (USDT), which currently holds about 70% of the stablecoin market.

Tether‘s private, less transparent structure has led to scrutiny over its reserves. While Circle’s IPO positions it as a more transparent, regulated alternative.

This could boost institutional adoption of stablecoins, especially as USDC gains legitimacy in traditional finance.