Key takeaways
- Circle, the issuer of USDC stablecoin, has launched its Initial Public Offering (IPO) on the New York Stock Exchange (NYSE) under the ticker CRCL, aiming to raise $624 million and reach a valuation of nearly $6 billion.
- Of the 24 million shares offered, only 9.6 million are new. 14.4 million will be sold by existing shareholders, which is unusual for a tech IPO.
- Circle is profitable, with $64.8 million in recent net income and $850 million in cash. The IPO could add another $240 million to its balance sheet.
- The IPO aligns with growing momentum in the US for stablecoin regulation. This could potentially boost Circle’s market credibility and investor interest.
- Coinbase, a key Circle partner and equity holder, stands to benefit from the IPO.
- Major firms like ARK Invest to making substantial investments, signalling strong market confidence.
Circle, the company behind the popular USDC stablecoin, has filed for an Initial Public Offering (IPO) on the New York Stock Exchange (NYSE), aiming to raise $624 million and hit a valuation near $6 billion. The long-anticipated move comes as US lawmakers advance efforts to regulate stablecoins, giving Circle a timely opening to go public.
The IPO Structure and Financial Highlights
The company will trade under the ticker symbol CRCL, with shares to be priced between $24 and $26. Circle plans to offer 24 million shares to the public. Of those, 9.6 million will be new shares issued by the company, while existing shareholders and early backers will offload 14.4 million shares, an unusual Initial Public Offering (IPO) structure in the tech space.
CEO Jeremy Allaire confirmed the deal structure but did not explain the rationale behind it.
Despite the unusual approach, Circle enters the market with a strong financial position. The company posted $64.8 million in net income in its most recent quarter and holds nearly $850 million in cash and equivalents. At the midpoint of its share price range, Circle expects to add another $240 million to its balance sheet from the IPO. The company’s recent report on USDC also underlines the good financial health of its assets.
Analysts peg Circle’s valuation at $5.65 billion based on current estimates, with a potential to rise to $6.7 billion when factoring in outstanding options and other equity.
Strategic Partnerships and Market Position
The IPO also carries implications for the crypto exchange Coinbase, which co-founded USDC and remains its main distribution partner. Coinbase owns equity in Circle and benefits from a revenue-sharing agreement that gives it 100% of the earnings from USDC held on its platform. Coinbase CEO Brian Armstrong has stated that his company has set a “stretch goal” of making USDC the world’s leading stablecoin.
Top Wall Street firms — J.P. Morgan, Citigroup, and Goldman Sachs — are managing the offering.
The IPO comes as lawmakers in Washington inch closer to passing the first US legislation focused on regulating stablecoins, a backdrop Circle seems eager to capitalize on.
A Favourable Ecosystem Will Have a Positive Impact on the IPO
Due to the political sentiments, investor interest already looks strong. Cathie Wood’s ARK Investment Management has signalled plans to buy up to $150 million worth of Circle shares. Circle will also give underwriters a 30-day option to purchase an additional 3.6 million shares.
USDC currently ranks as the second-largest stablecoin globally, trailing behind Tether’s USDT. Its market capitalization soared to $60.2 billion as of March 2025, breaking its previous record of $55 billion set in June 2022. Much of this growth stems from USDC’s dominance on Solana, where it now accounts for 80% of the stablecoin market.
As lawmakers near stablecoin regulation, analysts believe Circle’s IPO stands to benefit significantly, positioning the company at the forefront of a rapidly evolving financial landscape.
Read more: Circle Launches CPN Protocol to Revolutionize USDC-Powered Cross-Border Payments
