- Circle’s IPO aims for a $5 billion valuation, signaling its financial sector expansion despite a 41.8% drop in net income.
- USDC’s 36% market cap surge highlights stablecoin momentum as crypto trading and cross-border transactions gain traction.
- The IPO aligns with renewed tech listings, positioning Circle alongside Coinbase as major publicly traded crypto firms.
Circle, the issuer of USDC, has officially filed for an initial public offering (IPO). The company plans to list on the New York Stock Exchange under the ticker symbol CRCL. This marks its second attempt at going public after a failed SPAC merger in 2022.
The IPO filing, submitted to the SEC on Tuesday, signals Circle’s growing influence in the financial sector. JPMorgan Chase and Citigroup will lead the underwriting process. The company is targeting a valuation of up to $5 billion. A successful listing would position Circle among the most publicly traded crypto firms in the U.S.
Circle’s Financial Growth and Market Position
Circle reported $1.68 billion in revenue and reserve income in 2024, reflecting a 16% annual growth. However, net income fell by 41.8% to $156 million. In contrast, the company posted a net loss of $761.7 million in 2022.
Besides, 99% of Circle’s revenue came from stablecoin reserves and investments in Treasury bills. The growing stablecoin market has contributed to its expansion. USDC’s market capitalization has surged by 36% this year. However, it still trails behind Tether, which dominates 67% of the stablecoin sector.
The crypto market has been experiencing renewed optimism. It is occurring at a time of expectation of the first U.S. crypto bill aimed at regulating stablecoins. President Donald Trump has indicated his support for such regulatory definition. Hence, stablecoins have gained popularity, boosting crypto trading as well as cross-border transactions.
Competitive Landscape and Future Prospects
With its IPO, Circle will be positioned among publicly traded companies such as Coinbase. After going public in 2021, the cryptocurrency exchange currently has a $44 billion market capitalization. BitGo and Kraken are also planning about going public soon.
Moreover, eToro has recently filed for a U.S. listing. The Israeli-based trading platform generated 38% of its commissions from crypto transactions last year. Its net profit reached $192 million in 2024.
The tech IPO market has remained slow, yet recent filings indicate renewed activity. The listing of CoreWeave marked the biggest venture-backed tech IPO since 2021. Hence, Circle’s IPO timing could align with a potential market rebound.
