Circle Engages JPMorgan, Citi for $4B-$5B IPO, Aims for April Listing

Circle, the fintech company behind the USD Coin (USDC) stablecoin, has taken a significant step towards going public by engaging JPMorgan Chase and Citi to lead its initial public offering (IPO). The company is expected to publicly submit its IPO paperwork by late April, marking a return to the public markets after a failed attempt in 2021. The previous attempt involved a merger with a special purpose acquisition company (SPAC), which collapsed in late 2022 due to heightened regulatory scrutiny and a downturn in digital assets following the implosion of FTX.

Circle's IPO comes at a time when the US IPO landscape is showing signs of recovery. The company's move aligns with improving conditions for IPOs in the United States, with over 70 companies debuting and raising nearly $12 billion so far in 2025. The public filing will reveal Circle's financial performance and proposed ticker for the first time, providing investors with a clearer picture of the company's financial health.

USDC has become a key player in the crypto ecosystem, widely used for payments, trading, and decentralized applications. However, the stablecoin faced challenges in early 2023 when $3.3 billion of Circle’s reserves were briefly inaccessible due to the Silicon Valley Bank crisis. This led to a temporary loss of its dollar peg, but USDC quickly recovered after federal intervention. As of March, USDC’s market cap has reached a new high near $60 billion.

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. The company's revenue streams have been a subject of scrutiny, with nearly all of its income in early 2023 coming 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.

The IPO also comes as there is 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 face competition from other stablecoins launched by traditional financial firms and crypto companies, including offerings from PayPal, Ripple, and potentially Fidelity.

Circle's IPO is a significant development in the crypto industry, as it represents one of the biggest crypto listings since Coinbase. The company's move towards a traditional IPO, after years of delays and a collapsed SPAC deal, reflects its commitment to transparency and regulatory compliance. The public filing will provide investors with valuable insights into Circle's financial performance and future prospects, as the company continues to play a key role in the crypto ecosystem.