Circle IPO Targets $6B Valuation as USDC Stablecoin Surge Fuels Wall Street Debut

Circle Internet Group, the issuer of the USD Coin (USDC) stablecoin, has officially launched its long-anticipated initial public offering, aiming to raise up to $624 million at a valuation of approximately $5.65 billion. The IPO, one of the largest crypto-related offerings since Coinbase's 2021 debut, comes amid renewed optimism for the digital asset industry as U.S. regulatory sentiment appears to be shifting more favorably. Shares are expected to be priced between $24 and $26 and will trade on the New York Stock Exchange under the ticker symbol "CRCL".

Of the 24 million Class A common shares being offered, 9.6 million will be sold directly by Circle while existing shareholders, including Accel and General Catalyst, are offering the remaining 14.4 million shares. If underwriters exercise the 30-day option to purchase an additional 3.6 million shares, the total offering could grow further. On a fully diluted basis, the IPO could value Circle at approximately $6.7 billion. Notably, Cathie Wood's ARK Investment Management has signaled interest in acquiring up to $150 million worth of shares, reflecting institutional appetite for exposure to digital currency infrastructure.

Founded in 2013, Circle began as a consumer-facing fintech company focused on blockchain payments. It later pivoted to become one of the leading stablecoin providers globally. Circle’s flagship product, USD Coin (USDC), launched in 2018, is a dollar-pegged stablecoin used for digital transactions, remittances, and decentralized finance (DeFi) applications. As of now, USDC has a market capitalization of around $62 billion, making it the second-largest stablecoin behind Tether (USDT). Circle also issues EURC, a euro-backed stablecoin.

The company's revenue has grown in tandem with the expansion of the stablecoin market. Circle reported $1.68 billion in revenue and reserve income for 2024, compared to $1.45 billion in 2023. However, net income dropped to $155.7 million last year from $267.5 million in 2023, reflecting ongoing investments in infrastructure and product development. USDC's utility has expanded beyond trading to include cross-border payments and enterprise integrations, offering a reliable digital dollar alternative for businesses and consumers.

This IPO marks Circle’s second major attempt to enter the public markets. A previously planned $9 billion merger with a special-purpose acquisition company (SPAC) backed by Bob Diamond was called off in late 2022. The SPAC route had initially promised a faster track to the public markets, but regulatory delays and changing market dynamics led to the deal’s termination. Circle also reportedly held informal talks regarding a potential acquisition by Coinbase and Ripple Labs.

Circle’s public offering comes at a time when U.S. policymakers are moving toward enacting clearer regulatory frameworks for digital assets, particularly stablecoins. A bipartisan bill advancing through the Senate would create a legal foundation for the issuance and oversight of stablecoins, which could significantly benefit Circle’s long-term positioning. Former President Donald Trump has indicated he would sign crypto regulation into law by August, further improving the outlook for digital asset companies.

Peers in the space include Tether (issuer of USDT), which dominates the stablecoin market with over 67% share, as well as newer entrants like Paxos, MakerDAO (issuer of DAI), and crypto exchanges such as Coinbase, which co-founded USDC with Circle and earns interest income on USDC balances held on its platform. Coinbase also shares revenue from USDC-related products, making it a potential indirect beneficiary of Circle’s growth.

The IPO is being led by major financial institutions including J.P. Morgan, Citigroup, and Goldman Sachs, with participation from Barclays, Deutsche Bank, Societe Generale, and others. The breadth of underwriter participation highlights the growing mainstream financial interest in blockchain-based financial infrastructure.

In summary, Circle’s IPO represents a pivotal moment for the crypto sector. The company has evolved from a fintech startup into a foundational layer for digital dollar usage worldwide. While the offering comes at a valuation roughly 25% below its earlier SPAC deal, analysts see the repricing as a reflection of a more sober and sustainable outlook for the industry. As the regulatory climate warms and stablecoins gain broader utility, Circle’s listing could set the tone for the next wave of crypto-related IPOs.