Circle Aims for $4 Billion to $5 Billion IPO with JPMorgan and Citi Support

Circle, a prominent player in the cryptocurrency industry, has taken significant steps towards going public by enlisting the support of major financial institutions JPMorgan and Citi. The company plans to file for an Initial Public Offering (IPO) by the end of April, aiming for a valuation between $4 billion and $5 billion. This move comes amidst improving conditions for IPOs in the United States and growing legislative support for stablecoins, which are a key part of Circle's business model.

Circle's decision to partner with JPMorgan and Citi underscores the company's commitment to a traditional IPO process, following a previous failed attempt through a Special Purpose Acquisition Company (SPAC). The involvement of these major banks signals a significant shift in the company's strategy, as it seeks to capitalize on the current market conditions and the increasing acceptance of cryptocurrencies.

The IPO plans are part of a broader trend in the cryptocurrency industry, where several companies are exploring public listings to raise capital and gain credibility. Circle's stablecoin, USDC, is one of the most widely used in the market, and the company's public debut could further solidify its position as a leader in the stablecoin sector.

Circle's IPO plans are also indicative of the improving regulatory environment for cryptocurrencies in the United States. The growing legislative support for stablecoins suggests that the regulatory landscape is becoming more favorable for companies operating in this space. This, combined with the improving market conditions for IPOs, makes it an opportune time for Circle to go public.

The company's decision to enlist the support of JPMorgan and Citi is a strategic move that could help it navigate the complexities of the IPO process. These banks have extensive experience in underwriting and managing IPOs, and their involvement could provide Circle with the necessary expertise and resources to successfully complete its public offering.

USDC has become a key player in the crypto ecosystem, widely used for payments, trading, and decentralized applications. After peaking above $50 billion in market cap in 2022, USDC saw a sharp drop following the Silicon Valley Bank crisis in early 2023, when $3.3 billion of Circle’s reserves were briefly inaccessible. The stablecoin temporarily lost its dollar peg but quickly recovered after federal intervention. As of March, USDC’s market cap has reached a new high near $60 billion. Still, Circle faces questions about the breadth of its revenue streams.

According to unaudited financial figures seen by industry sources, nearly all of the company’s income in early 2023 came from interest on reserve assets, such as US Treasuries and cash equivalents. Coinbase, a key partner in the issuance of USDC, generated over $225 million in USDC-related revenue in the final quarter of 2024 alone. Circle’s latest valuation target is reportedly in the range of $4 billion to $5 billion, down from the $9 billion valuation set during its abandoned SPAC deal. According to people familiar with the transactions, shares of the company last changed hands on private markets at around $5 billion.

The offering comes as the US IPO landscape shows signs of recovery. So far in 2025, public listings on American exchanges are up significantly compared to last year, with over 70 companies debuting and raising nearly $12 billion. Circle may also benefit from growing political momentum around stablecoin regulation. The Senate Banking Committee advanced legislation earlier this month, and the House is expected to follow suit in April. Meanwhile, President Donald Trump has publicly supported digital assets and signaled his intent to sign stablecoin legislation by summer.

However, Circle will not be alone in the market. Competing stablecoins have launched from traditional financial firms and crypto companies alike, including offerings from PayPal, Ripple, and potentially Fidelity. The move marks Circle’s return to the public markets after a failed 2021 attempt. The company had previously tried to list via a merger with a special purpose acquisition company (SPAC). However, the deal collapsed in late 2022 amid heightened regulatory scrutiny and a downturn in digital assets following the implosion of FTX.