BlackRock Eyes 10% Stake in Circle Ahead of IPO

Asset manager BlackRock has expressed interest in acquiring a 10% stake in Circle, the issuer of the USDC stablecoin. This development comes as Circle prepares for its highly anticipated Initial Public Offering (IPO), which is expected to attract significant attention from both crypto and traditional finance firms. This move is part of a broader trend of institutional involvement in the crypto market, adding legitimacy to the high-flying assets.

BlackRock is reportedly preparing to acquire a portion of Circle’s shares in its upcoming IPO. According to a recent Securities and Exchange Commission (SEC) filing, Circle’s Chief Executive, Jeremy Allaire, plans to raise approximately $624 million through the IPO. The deal, expected to close on June 4, has already garnered multiple orders for the shares available. However, the details of the deal are not yet finalized, and BlackRock could potentially acquire a stake through another vehicle or opt out entirely. BlackRock and Circle have a history of collaboration, with BlackRock managing a money market fund for Circle that backs the USDC stablecoin. This fund currently holds approximately $53.5 billion.

USDC adoption is expected to continue its growth trajectory, building on gains from the past three quarters. Recent institutional developments in the United States, coupled with a soaring user base, are anticipated to favor the asset. Additionally, incoming stablecoin regulations are likely to enhance its compliance across multiple jurisdictions. Circle initially filed for its IPO on April 1 but delayed the process due to rising economic concerns and US tariff wars. The company has attracted major crypto firms like Ripple and Coinbase as users increasingly adopt its USDC stablecoin. Informal sale talks with Coinbase and Ripple have also been reported.

Despite reports of a $4 billion bid deemed too low, Circle has insisted that it is not for sale, reiterating its commitment to long-term goals. Meanwhile, Cathie Wood’s Ark Invest is also preparing to invest $150 million in Circle’s IPO. This move by Ark Invest further underscores the growing institutional interest in Circle and the broader digital asset market. Digital asset traders are optimistic as more institutional investors increase their exposure to the crypto market. Experts predict that these inflows will position assets for major upswings in the second quarter of 2025. Traditional players have raised the bar with investments in Bitcoin mining firms and stablecoin issuers, signaling a shift towards greater acceptance and integration of digital assets in the financial ecosystem.