Stablecoins Redefine IPOs as Bullish Blurs Lines Between Crypto and Wall Street

Bullish, the publicly traded cryptocurrency exchange, has completed the settlement of its $1.15 billion initial public offering using stablecoins, marking the first such instance in U.S. IPO history. The company announced that the majority of the stablecoins were minted on the Solana blockchain, underscoring the growing integration of digital assets into mainstream financial infrastructure [1]. The process was facilitated by Jefferies, the billing and delivery agent, which coordinated the minting, conversion, and delivery of the stablecoins to Bullish [1].

The IPO included USD- and EUR-denominated stablecoins, with Circle’s USDC and EURC representing a significant portion of the transaction. Bullish also received stablecoins from other issuers, including Paxos, PayPal, Ripple, Agora, and World Liberty Financial. The use of a diverse range of stablecoins reflects the company’s strategy to leverage liquidity and infrastructure from multiple digital asset providers. “We view stablecoins as one of the most transformative and widespread use cases for digital assets,” said David Bonanno, Bullish’s CFO [1].

The IPO, which raised $1.1 billion through the sale of 30 million shares at $37 each, saw Bullish’s shares surge over 150% on their NYSE debut last week. This strong market reaction highlights the continued investor appetite for public-listed crypto firms. Bullish, backed by Peter Thiel, has positioned itself as a leader in the evolving digital asset landscape. The company is also the parent organization of CoinDesk and CoinDesk Indices, further solidifying its presence in the crypto media and data space [1].

Bullish’s decision to settle its IPO in stablecoins is part of a broader trend within the crypto industry. Other exchanges, such as Gemini and Kraken, are reportedly preparing public listings as well, taking advantage of a potentially more favorable regulatory environment under a new U.S. administration. The company’s strategic use of stablecoins not only streamlines global fund transfers but also demonstrates the maturation of digital asset infrastructure.

The custody of the stablecoins used in the IPO was entrusted to Coinbase, a pioneering crypto exchange that went public in 2021. This collaboration highlights the growing interoperability between major players in the crypto ecosystem. Bullish’s CFO emphasized that the partnership with stablecoin issuers and their presence on the Bullish Exchange illustrates the company’s role in supporting the broader digital asset economy [1].

This innovative approach to IPO settlement reflects Bullish’s commitment to leveraging blockchain technology for efficiency and security. As the crypto industry continues to evolve, the use of stablecoins in large-scale financial transactions is likely to become more common, further blurring the lines between traditional finance and digital assets.

Source: [1] Crypto exchange Bullish settles $1.15 billion IPO using stablecoins (https://www.theblock.co/post/367480/crypto-exchange-bullish-settles-1-15-billion-ipo-using-stablecoins?utm_medium=rss&utm_source=companies.xml)