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Circle expects a fourth-quarter listing

Jul 20, 2022
Circle's insignia on a coin along with quarters and pennies.

Illustration: Annelise Capossela/Axios

Circle CFO Jeremy Fox-Geen says the company expects to list publicly in the fourth quarter of the year, Decrypt reports.

Why it matters: The stablecoin operator seeking to project strength after the implosion of another crypto in the space — Terra's UST — unleashed questions about its own liquidity.

Context: By successfully completely its SPAC merger with Concord Acquisition Corp., Circle would effectively be declaring to the world that it had passed the SEC's smell test.

  • Circle has faced delays to its listing process in the past due to a lack of regulatory manpower compared to the deluge of IPOs and SPACs in 2021. Crypto companies in general have also faced longer wait times with the SEC as regulators get their heads around the relatively new industry.
  • Circle's SPAC deal was previously expected to close before April 3, before Circle announced the merger's deadline had shifted to Dec. 8.
  • Under certain circumstances, the new deadline could also be extended to Jan. 23, 2023.

Thought bubble: Going public is not in vogue at the moment, given market conditions. But the stablecoin industry is one area where a much-complained about downside of going public (the increased scrutiny and transparency) could actually be a benefit — if it can scrub away some doubts around Circle's liquidity.

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