Jan 11, 2024 - Business

Stablecoin issuer Circle confidentially files for IPO

Illustration of a concrete pedestal with a concrete digital coin on top.

Illustration: Gabriella Turrisi/Axios

Circle, the largest U.S. issuer of stablecoins, has filed confidential IPO papers with securities regulators.

Why it matters: Stablecoins have been one of the hottest topics for regulators in the digital assets space, and Circle pitches itself as a company ready and willing for regulatory compliance.

  • It also has one of the longest track records with the most useage among stablecoin companies.

Details: The filing is all we know so far. By submitting confidentially, the company is able to keep sensitive information private while it readies for a listing. Its registration statement would then need to be made public at least 15 days before launch.

Flashback: A previous plan by Circle to go public was canceled at the end of 2022.

By the numbers: At its peak, the company's stablecoin, usd coin (USDC), had a market cap of over $56 billion in June 2022.

  • It has since fallen to $25 billion. The worst drop came last year, when it lost its peg with the U.S. dollar severely amidst the regional banking crisis.
  • It remains the second-largest stablecoin, though the market leader, tether (USDT), has nearly four times its market cap.

Be smart: Stablecoins are cryptocurrencies designed to have low or no volatility, usually by pegging their price to the U.S. dollar.

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