News Every Day | 02 April 2025, 00:19

Circle Sets Sights on IPO Amid Easing Crypto Regulations

Crypto is going mainstream in America, and it’s not an April Fools’ joke.

In a move that underscores the evolving and even productive relationship between traditional finance and the cryptocurrency sector, Circle Internet Financial, the issuer of the USDC stablecoin, is reportedly preparing for an initial public offering (IPO) slated for late April.

Circle’s journey to the public market has been marked by regulatory hurdles. The company’s initial attempt to go public via a special purpose acquisition company (SPAC) in 2021 was abandoned in December 2022 amid a challenging regulatory environment under the Securities and Exchange Commission (SEC) led by then-Chairman Gary Gensler.

However, the current Trump administration has invigorated the crypto sector with its deregulatory focus and laudatory promises to make the U.S. the “crypto capital of the world.”

In a sign of the times, the SEC has to-date dismissed or halted at least eight cases against crypto firms, including some of the industry’s most high-profile names.

For their part, domestic crypto firms are taking advantage of the new environment. Cryptocurrency firm Gemini, headed by billionaire twin brothers Cameron and Tyler Winklevoss, has also filed confidentially for an IPO; while cryptocurrency exchange Kraken is also reportedly preparing to go public as soon as the first quarter of 2026.

But Circle, a stablecoin issuer, has a different business model and plays a different role in the crypto landscape than both Gemini and Kraken.

Circle’s public debut has the potential to reshape competitive dynamics, enhance transparency, spur adoption, sway investor sentiment, and influence regulatory discourse around stablecoins in the U.S. and internationally.

Impact of Circle’s IPO

Circle’s public listing is likely to intensify competition among U.S. dollar stablecoin issuers. For example, in recent years, PayPal launched its own U.S. dollar stablecoin (PYUSD) in partnership with Paxos, signaling that FinTech incumbents are coming to see stablecoins as strategic for payments.

PayPal’s own stablecoin remains small in market cap but could leverage PayPal’s 400 million-plus user base and 20 million-plus merchants for rapid adoption. Circle’s IPO will put it in direct competition with PayPal on a more equal footing, both as highly regulated, publicly visible entities each vying to offer the most trusted digital dollar.

Circle’s stronger capital position after the IPO may enable it to offer incentives or improved infrastructure (APIs, custody solutions, insurance, etc.) to institutional clients.

The largest crypto IPO to date is Coinbase, which made its debut in 2021 with an initial valuation of approximately $86 billion. As of reporting, Coinbase has a market cap of $43.7 billion, and an enterprise value of $38.5 billion.

Circle is reportedly seeking a valuation of up to $5 billion, and has enlisted financial giants JPMorgan Chase and Citi to facilitate its IPO. The two banks also worked on Coinbase’s IPO.

Internationally, Circle’s IPO positions USDC to challenge Tether (USDT), the long-dominant global stablecoin, more aggressively. Tether maintains a commanding share of the stablecoin market, representing around 70% or about $130-140 billion in supply; a slice of the pie far above USDC’s roughly 20% share. Still, unlike Circle, Tether’s issuer remains private and less transparent, which has resulted in scrutiny about its reserves.

That said, Tether has deeply entrenched liquidity and user trust in many crypto markets, especially in Asia and emerging markets.

Institutional Adoption of Crypto

Circle’s IPO could be likely to boost institutional and enterprise adoption of stablecoins by helping in legitimizing USDC in the eyes of traditional finance. With heavier oversight and newfound capital, Circle can potentially expand its integrations with banking and payment systems, making USDC a standard option for moving dollars on the internet.

This benefits not just Circle but the stablecoin ecosystem as a whole, as increased usage for real-world commerce and finance cements stablecoins’ utility beyond crypto trading. And Circle’s IPO news comes amid a rash of other announcements occurring across the broader crypto market.

Last week, World Liberty Financial (WLFI), the decentralized finance company backed by the Trump family, announced plans to introduce USD1, a stablecoin redeemable 1:1 for the U.S. dollar and backed by short-term U.S. government treasuries, U.S. dollar deposits and other cash equivalents.

Also last week, Web3 money app Wirex said Thursday (March 27) that it launched a travel booking platform that allows users to pay with bitcoin, USDT or traditional currencies.

Ultimately, as the lines between traditional finance and digital assets continue to blur, stakeholders across the spectrum must adapt.

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