Circle, the company behind the fast-growing USDC stablecoin, has officially filed for a U.S. IPO, setting the stage for one of the most high-profile public listings in the crypto space. The firm submitted its S-1 filing to the U.S. Securities and Exchange Commission (SEC) on Tuesday and plans to list on the New York Stock Exchange under the ticker “CRCL.” Major banks JPMorgan Chase and Citigroup will lead the underwriting process.
The crypto-native company is reportedly eyeing a $5 billion valuation, making this IPO one of the largest in the industry since Coinbase’s direct listing in 2021.
Circle Aims for Wall Street After Previous IPO Attempt Collapsed
This is Circle’s second shot at going public. Its earlier plan to merge with a SPAC fell apart in late 2022 due to regulatory hurdles. Since then, Circle has repositioned itself strategically, relocating its headquarters from Boston to One World Trade Center in New York—an unmistakable signal that it’s leaning further into traditional finance territory.
That move appears to be paying off. In 2024, Circle pulled in $1.68 billion in combined revenue and reserve income, up from $1.45 billion in 2023. However, its net income dropped to $156 million from the previous year’s $268 million, according to CNBC.
If successful, the IPO would mark a major milestone for the crypto industry, which has seen few new entrants to the public markets in recent years. It would also spotlight the growing relevance of stablecoins as a foundational element of crypto infrastructure.
USDC vs. Tether: Stablecoin Race Heats Up
Circle is best known for USDC, the second-largest stablecoin by market capitalization. Currently, USDC has about $60 billion in circulation, accounting for roughly 26% of the global stablecoin market. While Tether still leads with 67%, USDC has seen faster growth—its market cap surged 36% in 2024, far outpacing Tether’s 5% increase.
Stablecoins are increasingly viewed as critical to the crypto economy. They’re commonly used in decentralized finance (DeFi), trading platforms, and cross-border transactions due to their consistent value, typically pegged to the U.S. dollar. This makes them more attractive to traders navigating crypto’s notorious volatility.
Timing the Market: Risks and Tailwinds for Circle’s IPO
Despite renewed momentum in the crypto market, Circle’s IPO timing comes with risks. The Nasdaq just logged its steepest quarterly decline since 2022, and tech IPOs have remained rare. However, things may be turning around. Companies like Klarna, Hinge Health, and StubHub have recently filed to go public, and CoreWeave’s recent IPO—the largest for a VC-backed U.S. tech firm since 2021—signals growing investor appetite.
Circle’s success could depend heavily on political developments. Lawmakers are pushing for new stablecoin legislation this year, and former President Donald Trump recently urged Congress to get a regulatory bill on his desk before August. If passed, this could provide a much-needed clarity boost for stablecoin issuers like Circle and trading platforms such as Coinbase and Robinhood.
Circle and Coinbase: A Strategic Alliance to Dominate the Stablecoin Space
Circle shares USDC-related revenue with Coinbase, and both companies have ambitious plans. Coinbase CEO Brian Armstrong recently called USDC a “strategic priority” and said the two companies have a stretch goal to make it the top stablecoin in circulation.
This partnership strengthens Circle’s positioning as regulatory clarity improves and demand for stablecoin-based services continues to rise.
Stablecoins Cement Their Role in Crypto’s Future
Analysts at Bernstein recently called stablecoins “systemically important” to the digital asset ecosystem. The sector has expanded by 11% in 2024 and 47% over the past year. These tokens now power a significant share of trading and DeFi operations, acting as a bridge between fiat and crypto economies.
As Circle prepares for its IPO, the big question remains: are public markets ready to place their trust—and capital—in the future of stablecoins?
