Circle CEO in an exclusive interview with Bloomberg stated that the company’s long-standing ambition to go public remains intact, as it continues to pursue a stock market listing without the need to raise funds through private markets.
Circle Moves Forward Toward IPO Without Private Funding
In the fourth quarter of 2021, Circle attempted to go public through a merger with the special purpose acquisition company Concord Acquisition Corp, but ultimately announced the termination of this plan by the end of 2022. Subsequently, the company faced a downturn in the cryptocurrency market and the crisis surrounding Silicon Valley Bank, which led to a significant decrease in the market capitalization of USDC from a peak of $56 billion to a low of $24 billion. However, as the applications of stablecoins diversify and countries begin to emphasize the importance of regulation, Circle appears to be poised to capitalize on the recovery of the cryptocurrency market. Earlier this year, the company quietly filed for a U.S. IPO, aiming to become the first compliant and publicly listed stablecoin issuer in the United States. Circle recently announced the relocation of its global headquarters to New York City and plans to establish a flagship office space on the upper floors of One World Trade Center, seemingly preparing for its IPO in the U.S.
However, it has been over nine months since the second application was submitted, and there seem to be no concrete updates. CEO Jeremy Allaire declined to comment on any interactions with the SEC or other regulatory bodies. Allaire mentioned that while the wait for IPO approval is lengthy, the company does not need to raise additional funds.
“Our financial situation is strong, and we can build a very solid business, and we are not currently seeking any funding.”
Optimistic About Stablecoin Legislation
Regarding the stablecoin legislation that significantly impacts Circle, Allaire noted that Congress is considering several draft versions of crypto-related bills. He expressed optimism that stablecoin legislation could pass after the November elections and believes that new regulatory frameworks will facilitate more traditional financial participants, such as banks, asset management firms, and payment companies, to enter the digital asset ecosystem.
“They will only collaborate with regulated infrastructure, and we are already prepared to achieve this goal”