Stablecoin Giant Circle Completes IPO at Near $7B Valuation
The parent company of the USDC stablecoin, Circle Internet Group, raised 1.05 billion US dollars through its initial public offering (IPO).
Circle sold 34 million shares at a price of $31 per share, corresponding to a valuation of approximately $6.8 billion. If options and other securities are taken into account, the fully diluted valuation is close to 8 billion US dollars.
What is USDC? Unlike cryptocurrencies with high volatility such as Bitcoin, USDC is a stablecoin pegged 1:1 to the US dollar. As its value is backed by US dollar reserve assets, its price fluctuations are extremely small.
According to the data from Circle's official website, as of May 29th, the circulation of USDC was approximately 61 billion US dollars, accounting for about 29% of the 210 billion US dollar stablecoin market. It is the second largest stablecoin globally, only after Tether's USDT.
As the crypto market rebounds and market confidence strengthens, the stablecoin market has also become prosperous. In 2024, Circle achieved revenue of 1.68 billion US dollars and a net profit of 156 million US dollars.
Circle's stocks will start trading on the New York Stock Exchange this Thursday under the stock code CRCL. This IPO received oversubscription. According to informed sources, the subscription quantity is more than 25 times the actual issuance volume. Its underwriters are top Wall Street investment banks such as JPMorgan Chase, Goldman Sachs and Citigroup.
It is understood that ARK Invest, led by Casey Wood, plans to purchase up to 150 million US dollars worth of Circle stocks, while BlackRock is expected to purchase approximately 10% of the IPO shares. It is worth noting that Bellede is also in charge of managing a USDC reserve fund worth 53.3 billion US dollars, which supports over 90% of the USDC reserves.
As Circle was conducting its IPO, the Trump administration's attitude towards cryptocurrencies was becoming more friendly, which triggered optimism in the market.
After taking office, US President Trump released a Meme coin named after him. Recently, the US Senate also passed the "GENIUS Act", which marks progress towards clearer stablecoin legislation and boosts investors' optimism.
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