USDC Issuer Circle’s IPO Filing Reveals $30B Reserve Backing as NYSE Listing Nears

Key Insights

• As revealed in its NYSE IPO filing, Circle discloses $29.98 billion in net assets backing USDC.
• The BlackRock-managed reserve fund earned $1.28 billion in net investment income during fiscal 2024, reflecting a 5.31% yield.
• Circle warns of liquidity risks tied to USDC redemptions, as it remains the fund’s sole shareholder and faces exposure to macro and regulatory shocks.

As USDC-issuer Circle gears up to enter the US market, its IPO filing discloses $30B in assets, strong yield performance, and BlackRock-managed reserves.

Circle Discloses Robust Financials in NYSE IPO Filing

Circle Internet Financial has officially filed to list its shares on the New York Stock Exchange. The stablecoin issuer’s S-1/A filing, submitted to the U.S. Securities and Exchange Commission, outlines $29.98 billion in net assets backing its USDC stablecoin as of April 30, 2024.

The filing confirms that the upcoming IPO will involve 24 million Class A common stock shares. Lead underwriters include J.P. Morgan, Citigroup, and Goldman Sachs. Estimated expenses for the offering, excluding underwriting fees, total $13 million.

Circle has positioned itself as a regulated financial infrastructure provider. Its reserve data and income yield reflect that approach.

Circle Reserve Fund Delivers Over $1.28 Billion in Net Investment Income

Circle’s primary asset, the Circle Reserve Fund, is managed by BlackRock under the umbrella of BlackRock FundsSM. The filing shows the fund earned $1.28 billion in net investment income during the 12 months ending April 30, 2024.

Total investment income stood at $1.30 billion, driven by interest on unaffiliated debt securities and repurchase agreements. After accounting for operating expenses, net income accounted for a 5.31% return. The fund maintained a $1.00 NAV throughout the reporting period.

As of April, the fund’s $30.11 billion in total assets included $18.73 billion in repo agreements and $10.38 billion in unaffiliated investments. Circle held 29.99 billion shares, with net asset value per share reported at $1.

The structure aligns with Rule 2a-7 under the Investment Company Act of 1940, designating the fund as a government money market fund.

BlackRock Absorbs $3 Million in Waived Fees

Circle’s relationship with BlackRock extends beyond portfolio management. The fund’s expenses totaled $55.26 million in fiscal 2024. However, BlackRock waived and reimbursed over $33 million in advisory and class-specific administrative fees.

This lowered the net expense ratio to just 0.09% for the year. Without the waivers, expenses would have represented 0.22% of average daily net assets.

Such waivers are contractually locked in through June 30, 2025. BlackRock has also reserved the right to end voluntary reimbursements without notice.

The IPO filing notes that Circle Reserve Fund only services Circle Internet Financial. Redemptions and deposits are fully tied to USDC supply-demand activity.

Risks Linked to Stablecoin Volatility Remain Embedded in Fund Model

Because Circle is the sole shareholder, large-scale redemptions—triggered by customer exits from USDC—could affect the fund’s liquidity. A sharp reduction in reserves may push up the expense ratio or force asset sales.

Circle acknowledges that macroeconomic shocks, geopolitical risk, or regulatory developments may also impact asset valuations and inflows. In July 2023, the U.S. Securities and Exchange Commission implemented rule changes affecting money market funds. These rules removed the ability to suspend redemptions during times of distress and introduced mandatory liquidity buffers.

Though Circle’s fund is exempt from discretionary liquidity fees due to its classification, it remains bound by new minimum liquidity requirements and reporting standards.

Circle IPO Comes After Restructuring, Coinbase Deal, and Hashnote Acquisition

Circle’s current form emerged from a reorganization completed on July 1, 2024. That transaction canceled prior equity in its Irish-based holding company and replaced it with U.S.-based equity through Circle Internet Group, Inc.

The IPO filing also details previously unregistered securities sales. These include a $401 million Series F raise in May 2022 and the $120.2 million acquisition of Hashnote in Jan. 2025. Other capital events include share exchanges with Coinbase and multiple warrant issuances to commercial partners.

Circle also highlighted its 2023 agreement with Coinbase as a strategic alliance, reinforcing its infrastructure commitments.

Stablecoin Reserves Show Scale as Circle Targets Public Markets

The Circle Reserve Fund’s growth from $25.38 billion in April 2023 to $29.98 billion in April 2024 signals increasing adoption of USDC. During that time, the fund generated over $760 million in additional net assets and over $1.28 billion in income.

While shares remained fixed at $1, the reserve fund’s real value lies in its short-term U.S. Treasury holdings and secured repo agreements. The fair value hierarchy shows all instruments marked at Level 2, confirming market-based inputs despite using amortized cost accounting.

Circle’s planned listing represents the next step in transitioning from a private tech firm to a regulated, U.S.-listed financial entity.

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