Circle taps JPMorgan and Citi to lead IPO, targeting April filing

Circle Internet Financial, the company behind the widely used USDC stablecoin, has tapped two Wall Street giants, JPMorgan Chase and Citi, to spearhead its long-anticipated initial public offering (IPO).

According to sources familiar with the issue, the fintech firm is gearing up to publicly file its prospectus by late April, setting the stage for a potential stock market debut before June.

Notably, this move marks a significant step for Circle, which has been eyeing public status for years, and underscores the growing intersection between traditional finance and the cryptocurrency sector.

Circle’s second IPO attempt after failing in 2021

After a failed attempt to go public via a special-purpose acquisition company (SPAC) merger in 2021, the company now faces a more favorable regulatory climate by hiring these two banks, which could smooth the path to its IPO.

In 2021, the company announced plans to merge with Concord Acquisition Corp, a SPAC backed by former Barclays CEO Bob Diamond, targeting a $9 billion valuation.

However, the deal unraveled amid delays from the US Securities and Exchange Commission (SEC) and the subsequent crypto market crash of 2022, triggered in part by the collapse of FTX.

By December 2022, Circle and Concord mutually terminated the agreement.

Undeterred, Circle filed confidential IPO paperwork with the SEC in January 2024, laying the groundwork for its current push, which now appears poised to capitalize on renewed market optimism.

Notably, the hiring of JPMorgan and Citi reflects Circle’s ambition to secure a valuation between $4 billion and $5 billion, a range that aligns with its estimated worth in private secondary markets last July.

Also, these banking heavyweights bring credibility and expertise to the table, signaling Circle’s intent to appeal to mainstream investors.

The involvement of such prominent underwriters also highlights the increasing acceptance of crypto-related businesses by traditional financial institutions.

Circle plans to strengthen its US presence

The timing of this IPO filing is notable, as it follows Circle’s strategic efforts to strengthen its footing in the US market.

In September 2024, the company announced it would relocate its global headquarters from Boston to New York City, setting up shop in One World Trade Center—a move seen as aligning itself closer to the heart of traditional finance.

Additionally, Circle has been navigating regulatory scrutiny, with the SEC previously raising concerns about whether USDC could be classified as a security, according to a June 2024 Barron’s report.

A friendlier regulatory environment under the current administration, however, may ease these hurdles, giving Circle a clearer runway to go public.

With JPMorgan and Citi at the helm, Circle’s April filing is not just a milestone for the company but a potential turning point for the broader integration of cryptocurrency into the public markets.

A successful IPO issuance could pave the way for other crypto firms, like Kraken or Bitpanda, to follow suit, especially as investment banks show growing interest in the sector.

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