- BlackRock is to buy 10% of the shares of Circle’s IPO, in its further expansion in the stablecoin and crypto assets space.
- The company controls 90% of USDC reserves via a government money market fund worth $30 billion.
- Cathie Wood’s Ark Invest also targets a stake of $150 million, indicating heightened institutional appetite for Circle’s public offering.
The $11 trillion fund manager BlackRock is set to buy 10% of Circle’s IPO shares, sources say. The USDC stablecoin company is looking to raise $624 million, as per its US Securities and Exchange Commission filing.
BlackRock Deepens Involvement with Circle
BlackRock’s reported plan to invest heavily in Circle’s IPO reflects its expanding footprint in the digital asset space. Sources familiar with the matter confirm the asset manager’s intent to purchase 10% of the shares in the upcoming offering.
Circle’s reserves are closely tied to BlackRock’s management. As of late April 2024, the Circle Reserve Fund reportedly held $30 billion. Around 90% of these reserves are managed by BlackRock in a government money market fund.
This strategic relationship places BlackRock in a key position to benefit from Circle’s future public market performance. The investment would further entrench its stake in the stablecoin economy, particularly in the USDC infrastructure.
Growing Institutional Interest in Circle
In addition to BlackRock, Ark Invest’s CEO Cathie Wood has shown strong interest in the IPO. She is reportedly considering a $150 million purchase of Circle shares. This would further broaden institutional exposure to USDC, one of the most widely used stablecoins in the crypto ecosystem.
In spite of the IPO news, Circle still attracts acquisition interest. Coinbase and Ripple have also reportedly considered buying the company. None of these talks have formally been denied or confirmed.
The IPO has not deterred the speculation around a buyout. Instead, it has fueled expectations of potential consolidation within the stablecoin market. Investors are closely watching for any formal developments on the acquisition front.
BlackRock’s Expanding Crypto Portfolio
Since the beginning of 2024, BlackRock has steadily grown its presence in the crypto sector. Its launch of the iShares Bitcoin Trust (IBIT) placed it among the top issuers of spot Bitcoin ETFs. The fund has since recorded one of the most successful ETF debuts in financial history.
This momentum appears to be driving BlackRock’s continued interest in blockchain-based financial services. Its strategic role in managing Circle’s reserves and now its potential IPO stake reinforces this trend.
The acquisition is also a sign of wider institutional faith in stablecoins as part of the maturing financial infrastructure. Circle’s push to go public is well-timed as regulatory clarity is emerging and investor appetite is still robust. With institutional investment expanding, Circle’s IPO may signal another important milestone toward the convergence of conventional finance with digital assets.
