Circle Prepares for IPO with Strategic Move from Ireland to the US

The post Circle Prepares for IPO with Strategic Move from Ireland to the US appeared first on Coinpedia Fintech News

Popular USDC stablecoin issuer Circle is set to relocate its legal base from Ireland to the United States in preparation for an anticipated IPO. The sudden relocation news somewhat aligns with Circle’s goals for becoming a publicly traded entity.

Circle’s Redomiciliation Strategy

As reported by Bloomberg, Circle has planned “to shift its legal base to the US from the Republic of Ireland,” all while the company is gearing up for a potential IPO launch, with court paperwork already filed to facilitate the move. 

Although industry experts speculate that various factors, such as tax considerations and regulatory frameworks, may have influenced the decision, Circle’s spokesperson declined to mention any specific details about the rationale behind the relocation.

Circle’s move to redomicile in the U.S. seems like a strategy that aligns with the company’s earlier filing for an IPO with the U.S. Securities and Exchange Commission. Given that Circle’s spokesperson refused to explain the reasons, the aim behind Circle establishing its legal presence in the U.S. could be to streamline its operations and regulatory compliance efforts, positioning itself favorably for its public offering.

Market Position and Future Implications

Circle, the issuer of the second-largest stablecoin USDC, has a market capitalisation of approximately $33 billion. USDC competes closely with Tether’s USDT for market share. 

Goldman Sachs, Fidelity, and BlackRock are some industry heavyweights notably included in Circle’s roster of investors, showing strong support for its strategic initiatives.

The application has been before the SEC since January 11. As soon as the Commission verifies that Circle fulfills all the necessary market conditions, the company is likely to launch its IPO offering, potentially after the first half of 2024. 

If Circle successfully relocated to the U.S., it can bolster its journey toward becoming a publicly traded company by favorably leveraging the regulatory environment and market conditions in the U.S.