Circle Internet Financial, the issuer behind the USDC stablecoin, has officially filed for an initial public offering (IPO) on the New York Stock Exchange. The company plans to trade under the ticker symbol "CRCL," with financial giants JPMorgan Chase and Citigroup acting as lead underwriters for the offering.
This filing marks Circle's second attempt to enter public markets. The company previously pursued a public listing through a SPAC merger in 2021, but that deal was ultimately called off in late 2022 amid regulatory uncertainty and broader market turbulence following the collapse of FTX.
Financial Performance and Market Position
Circle's public prospectus reveals substantial revenue growth, with the company reporting $1.68 billion in revenue and reserve income for 2024. This represents a steady increase from $1.45 billion in 2023 and $772 million in 2022. Despite this revenue growth, net income declined to approximately $156 million in 2024 from $268 million the previous year.
The company is reportedly targeting a valuation between $4 billion and $5 billion for its public debut. This represents a significant reduction from its peak valuation of $9 billion during its previous SPAC merger attempt in February 2022.
USDC, Circle's flagship product, currently maintains approximately $60 billion in circulation, making it the second-largest stablecoin by market capitalization. This represents about 26% of the total stablecoin market, trailing behind Tether's dominant 67% market share.
The stablecoin has demonstrated strong recovery and growth momentum, with its market capitalization growing 36% this year – significantly outpacing Tether's 5% growth during the same period. This recovery is particularly notable following challenges in March 2023 when Circle revealed it had $3.3 billion exposed to the failing Silicon Valley Bank, causing a brief depeg event.
Competitive Landscape and Revenue Model
Circle operates in an increasingly competitive stablecoin market, facing competition from both cryptocurrency-native companies and traditional financial institutions. Recent entrants include Ripple and PayPal, with reports indicating that Fidelity is also exploring entry into the stablecoin space.
The company's revenue model primarily relies on interest income generated from the reserve assets backing USDC. According to unaudited financial statements from the first half of 2023, interest income accounted for approximately 99% of Circle's total revenue. These reserves consist primarily of U.S. Treasury bills and other dollar-denominated assets.
Circle maintains a significant revenue-sharing partnership with Coinbase for USDC. This arrangement proved substantial for both companies, with Coinbase earning $225.9 million from the partnership in the fourth quarter of 2024 alone.
Regulatory Environment and Market Timing
The current regulatory climate appears increasingly favorable for stablecoin issuers. The Senate Banking Committee advanced stablecoin legislation in March, with the House of Representatives expected to vote on their version of the bill in early April.
The administration's stance on digital assets has also shifted, with President Trump expressing support for pro-crypto policies and stating his intention to sign stablecoin legislation by August. This regulatory clarity could create a more favorable environment for Circle's public market debut.
Circle enters the public markets during a period of volatility for technology stocks. The Nasdaq recently experienced its steepest quarterly decline since 2022, and the technology IPO market has remained relatively quiet for over three years.
Despite these challenges, the broader IPO market shows signs of revival. So far in 2025, 73 companies have gone public on U.S. exchanges, representing a 70% increase compared to the same period in 2024. The total value of these offerings reached $11.8 billion, marking a 39% increase year-over-year.
Other notable companies that have filed for public offerings in recent months include Klarna, StubHub, and eToro. If successful, Circle's IPO would position it as one of the most prominent pure-play cryptocurrency companies to list on a U.S. exchange since Coinbase's direct listing in 2021.
Strategic Positioning and Company History
Circle has undertaken several strategic initiatives to position itself at the center of global finance. Last year, the company announced plans to relocate its headquarters from Boston to One World Trade Center in New York, signaling its ambitions to integrate more deeply with traditional financial markets.
Founded in 2013 by internet entrepreneur Jeremy Allaire and Sean Neville, Circle has raised approximately $1.1 billion in funding from prominent investors including BlackRock and Coinbase. Neville stepped down as co-CEO in 2019, leaving Allaire as the sole chief executive.
The company has undergone significant transformation since its founding, initially launching various business lines focused on payments and cryptocurrency trading before pivoting to stablecoins around 2018. This strategic focus on USDC has positioned Circle at the forefront of the growing stablecoin market, which has expanded approximately 11% this year and 47% over the past year.
Industry analysts increasingly view stablecoins as a "systemically important" component of the cryptocurrency ecosystem, providing essential liquidity and serving as a bridge between traditional finance and digital assets. For those interested in tracking real-time market developments, 👉 monitor stablecoin market data provides valuable insights into this rapidly evolving sector.
Frequently Asked Questions
What is Circle's expected valuation for its IPO?
Circle is reportedly seeking a valuation between $4 billion and $5 billion for its public offering. This represents a reduction from its previous valuation target of $9 billion during its attempted SPAC merger in 2022. The valuation reflects both the company's financial performance and current market conditions for technology IPOs.
How does Circle generate revenue?
Circle primarily generates revenue through interest income from the reserve assets backing USDC. These reserves consist of U.S. Treasury bills and other dollar-denominated assets. Approximately 99% of the company's revenue comes from interest income, with additional revenue from partnerships like their arrangement with Coinbase.
What percentage of the stablecoin market does USDC hold?
USDC currently represents approximately 26% of the total stablecoin market, with $60 billion in circulation. This makes it the second-largest stablecoin behind Tether, which maintains about 67% market share. USDC has demonstrated strong growth recently, expanding its market capitalization by 36% this year.
Why did Circle's previous attempt to go public fail?
Circle previously attempted to go public through a SPAC merger in 2021, but the deal collapsed in late 2022. This failure was attributed to regulatory challenges and the broader cryptocurrency market downturn following the collapse of FTX and other industry participants during that period.
How has the regulatory environment changed for stablecoins?
The regulatory environment has become more favorable for stablecoins recently. The Senate Banking Committee advanced stablecoin legislation in March, and the House is expected to vote on similar legislation. The current administration has also expressed support for creating clear regulatory frameworks for digital assets.
What makes this IPO attempt different from Circle's previous effort?
This IPO attempt differs in several key aspects: Circle is pursuing a traditional IPO rather than a SPAC merger, the regulatory environment has improved with pending legislation, and the company has demonstrated sustained revenue growth and market share recovery following the March 2023 banking crisis that affected USDC.