Stablecoin issuer Circle is going for an Initial Public Offering (IPO) listing. The platform has yet to reveal the total number of shares it intends to sell. At the same time, the firm has not revealed the pricing of each share unit.
Circle Internet Financial issues a stablecoin namely USDC which has the second-largest market cap following Tether (USDT). The platform recently opted for an initial public offering in the United States. Reuters reported that Circle is opting to become a publicly traded firm.
SEC’s Screening Process
The firm further relayed that the IPO will initiate once the Securities and Exchange Commission completes the screening process. The firm has also informed the investors that it is still subjected to various factors that impact the prices of cryptocurrencies.
Circle planned to opt for a public listing in 2021 using a merger with Concord Acquisition Corporation. The firm was valued at $4.5 billion at the time and in 2022 reached a $9 billion evaluation. However, the merger was canceled.
Circle Attempted to File an IPO in 2023
A Bloomberg report published in 2023 suggested that Circle was working on another IPO attempt while consulting with advisors. At the time, a spokesperson for the firm told the media that becoming a publicly listed firm has been part of the strategic plan for a long time.
Nevertheless, the firm refused to make any comments regarding the circulating rumors. The project issues and manages one of the biggest stablecoin projects in the world which is currently valued at $25 billion.
Circle launched a bridged version of USDC stablecoin in November 2023 in an unofficial capacity. This project will standardize the process of launching USDC on new networks. As per the official blog post of Circle on 21st November 2023, the platform briefed developers regarding a two-phase process to issue USDC.
The first phase will allow third-party developers to publish token contracts for new and old versions. The new token issuance will be backed by the native tokens on the issuing network or another network.
Circle Introduces USDC Standardization Process
In the second phase of the USDC issuance standardization process, Circle will take control of the contracts and in this way, all USDC coins will be backed directly by Circle reserves.
The project has noted that the second phase may be delayed or eliminated altogether in some deployments. At the same time, the project explained that USDC issued following the first phase may be unofficial and unredeemable by Circle but operate as a proxy for the stablecoin in diversified networks where bridging is possible.
Circle retained that the firm was issuing the standardization process to eliminate the need for migrations. The migration process allows investors to swap unofficial USDC versions with official ones when they become available.
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