Things are going well for Circle – not only is the in-house USDC enjoying ever greater popularity, but now the stablecoin company is also planning its IPO.
More and more companies from the crypto world are venturing onto the stock exchange floor. Now Circle – a fintech company backed by Goldman Sachs that specialises in developing stablecoins – is doing the same. Circle is the co-founder of the USD Coin, or USDC, which has since become the second-largest stablecoin directly behind Tether. With a market value of around 26.78 billion US dollars at CoinMarketCap, the USDC is also the sixth-largest cryptocurrency overall. USDC Coin transactions are supported by the Stellar Lumens network and the in-house XLM Coin.
Now, the Circle company has recently officially announced its plans for an IPO. This will involve a new Irish holding company acquiring both Circle and Concord Acquisition Corp, a so-called special purpose acquisition company, and becoming a publicly-traded company. “We just see an incredible opportunity to grow rapidly and grow around the world, and we think that this series of transactions and becoming a public company will allow us to be a trusted platform in this digital currency industry,” Circle co-founder and CEO Jeremy Allaire told CNBC’s “Squawk Box”. The listing is to take place on the New York Stock Exchange (NYSE) under the ticker “CRCL”, as Allaire also announced via Twitter.
After the SPAC deal, Circle shareholders will still hold about 86 per cent of the shares in the listed company, Cointelegraph reports. The company created by the merger is valued at about US$4.5 billion. In addition, investors including Marshall Wace, Fidelity Management and research firm Adage Capital Management have committed $415 million in private and public equity (PIPE) funding, according to Cointelegraph. Together with the trust assets and Circle’s recently completed convertible bond financing, this will give the company gross proceeds of more than US$1.1 billion, it said.
Circle to go public later this year
“We look forward to working with Concord’s board and investment team, which has decades of experience building financial services companies around the world,” IBS Intelligence quoted Allaire as saying. Jeremy Allaire will remain CEO following the merger, while Bob Diamond, chairman of Concord, will become a member of the board of directors.
“Circle is a true pioneer in trusted digital currencies, which are an increasingly important part of the global financial system. The company has built an outstanding reputation by developing highly innovative blockchain-enabled products and services within the regulatory framework. Circle’s world-class leadership team, track record and extraordinary ambition help position it as one of the most exciting companies in Fintech and the transformation of finance,” IBS Intelligence shares Diamond’s words.
The transaction has already been approved by the boards, with closing targeted for the fourth quarter of this year – subject to shareholder approval and other customary closing conditions, Cointelegraph explains.
Creating more transparency
Through the IPO, Circle promises to create more transparency. This is because regulators have recently become increasingly concerned and have called for more transparency in stablecoin trading.
“Circle was founded with the mission to change the global economic system through the power of digital currencies and the internet. We’ve made great strides towards realising that vision. By debuting on the stock market, we’re taking an even greater step forward in building an internet financial services company on a global scale. We want to help businesses everywhere engage in a more open, inclusive and effective global economic system,” BTC Echo quotes Allaire as saying.