Unpacking Stablecoins: What You Need to Know Ahead of Circle's $6.7 Billion IPO

Circle Internet Group, the issuer of popular stablecoin USDC, filed for a $624 million IPO, targeting a $6.71 billion valuation. USDC is pegged to the U.S. dollar and serves as a stable alternative to volatile cryptocurrencies like Bitcoin and Ethereum. The company's IPO comes amid growing interest in stablecoins, with the U.S. government also taking a closer look at regulation in the space.

Circle Internet Group, the issuer of the popular stablecoin USDC, has filed for an initial public offering (IPO) on the New York Stock Exchange (NYSE). The IPO aims to raise $624 million, valuing the company at approximately $6.71 billion [1]. USDC, pegged to the U.S. dollar, offers a stable alternative to volatile cryptocurrencies like Bitcoin and Ethereum.

Circle plans to offer 24 million shares of its Class A common stock, with the potential to increase to 27.6 million shares if underwriters fully exercise their option to purchase additional stock. The shares will trade under the ticker CRCL on the NYSE. Each share is expected to be priced between $24 and $26, with the highest price target being $26 [1].

The IPO comes amid growing interest in stablecoins and increasing regulatory scrutiny from the U.S. government. Circle's IPO will be led by prominent financial institutions, including Goldman Sachs, J.P. Morgan, and Citigroup, serving as joint lead active bookrunners. Other co-managers include Santander, BNY Capital Markets, Needham & Company, Canaccord Genuity, and Oppenheimer & Co. [1].

Circle's IPO also follows rumors of potential acquisitions by Ripple and Coinbase. Bloomberg reported that Circle rejected Ripple's initial offer of around $5 billion, and subsequent reports suggested that Ripple increased its bid to roughly $11 billion. However, Circle has refuted these reports, stating that its focus remains on its long-term goals, including going public [1].

Circle's stablecoin, USDC, is fully backed by highly liquid cash and cash-equivalent assets, with the majority of the USDC reserve invested in the Circle Reserve Fund (USDXX), an SEC-registered 2a-7 government money market fund. USDC is redeemable 1:1 for US dollars and is available on 19 blockchain networks. Circle's independent auditor is Deloitte & Touche LLP [2].

The IPO is expected to provide Circle with significant capital to expand its stablecoin operations and explore new opportunities in the cryptocurrency market. However, the volatile nature of the IPO market and the uncertainty surrounding stablecoin regulation may present challenges for the company.

References:
[1] https://thecryptobasic.com/2025/05/27/usdc-stablecoin-issuer-circle-files-for-ipo-on-nyse/
[2] https://www.circle.com/usdc