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Circle Internet Financial files for IPO following SPAC deal collapse

EditorRachael Rajan
Published 2024-01-11, 09:24 a/m

BOSTON - Circle Internet Financial, the Boston-based fintech company known for its USDC stablecoin, has taken a significant step towards going public by filing a confidential draft registration statement with the Securities and Exchange Commission (SEC). The move towards an initial public offering (IPO) comes after the company's planned merger with a special-purpose acquisition company (SPAC) was called off in December 2022.

The previous merger, which was supposed to value Circle at $9 billion, did not materialize. However, Circle is pressing on with its ambitions to enter the public market. The company, led by CEO Jeremy Allaire, has not disclosed the number of shares or the price range for the proposed offering at this time.

Circle's USDC stablecoin boasts a market capitalization of $25 billion, securing its position as the second-largest stablecoin by market cap, trailing only behind Tether. Stablecoins like USDC are digital currencies designed to maintain a stable value relative to a specific asset, often the US dollar, making them a vital component in the cryptocurrency market for traders and investors seeking to avoid volatility.

The confidential draft S-1 filing with the SEC is a preliminary step that companies often take before going public. It allows them to work with regulators to address any concerns before making their financial information public and officially launching the IPO process. Circle's move towards an IPO signifies a growing trend of cryptocurrency-related businesses seeking to tap into the public equity markets, despite the recent turmoil in the crypto space.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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