- Circle’s IPO registration follows a $1.68B revenue announcement in 2024, with SEC approval awaiting.
- Stablecoins get US acceptance, propelling IPOs for crypto firm such as Ripple and Kraken.
Circle has formally submitted an initial public offering (IPO) application, its first for the second-largest crypto industry stablecoin issuer. Following recent confirmation by Bloomberg that the S-1 filing with the U.S. The business has completed its filing with the Securities and Exchange Commission (SEC) and now waits for regulatory approval to go public on the New York Stock Exchange under the ticker “CRCL.”
The crypto space has highly awaited this filing. Circle has been trying to go public since 2021 but faced numerous setbacks. Today, with better financial performance and a favorable regulatory climate, the stablecoin behemoth is trying again.
Circle’s IPO prospectus filing follows a record-high financial year during which the firm reported $1.68 billion in revenue at the close of 2024. Net income for the year stood at $156 million, a huge reversal of its situation in 2023 when it reported $1.45 billion in revenue and $268 million in net income.
The revenue surge is proof that stablecoins are more in demand, specifically Circle’s USDC, as institutional investors continue to invest in cryptocurrency. The influx of capital could have given Circle the boost it needs to drive its IPO plans, signaling to investors that it believes in its long-term stability.
Past IPO Attempts and Regulatory Problems
This is not the first time Circle has tried to list on the public markets. Circle had also earlier tried, in 2021, to combine with Concord Acquisition Corp, a special purpose acquisition vehicle (SPAC), to list on the public markets. The agreement went sour as Circle did not qualify with SEC within the given time limit.
Once more, in December 2022, Circle postponed its IPO plans, together with Concord, to drop their business combination because of regulatory challenges. Again, with a more solid financial situation and increasing industry backing, Circle is again pursuing to go public.
One of the most important factors behind Circle’s revived IPO aspirations is the shifting regulatory landscape. Stablecoins have been picking up steam as the U.S. government, under President Donald Trump, recognizes their potential.
Lawmakers proposed the STABLE Act bill last week to oversee stablecoins, bringing much-needed transparency to issuers such as Circle. President Trump has also reaffirmed the need for stablecoin regulation on numerous occasions, indicating a better environment for crypto companies to operate in the U.S.
Additional Crypto Companies Considering IPOs
Circle’s attempt to become a public company is just a step in a wider trend among crypto companies. Ripple, Kraken, and Gemini are also said to be scheduling IPOs later this year.
CoreWeave, an AI company with a connection to Bitcoin mining firm Core Scientific, was already listed on the public market, going on trade March 28. The new regulatory backing and investment interest in crypto firms indicate that 2024 may be a turning point for the sector’s involvement in the public market.
Stablecoins are of extreme value in the crypto space because they introduce stability that isn’t present with traditional cryptocurrencies. With regulators’ support and the rise in adoption, their role in the digital asset market is expanding.
Coinbase CEO Brian Armstrong has urged the government to legalize earning interest on stablecoin holdings, further highlighting the sector’s potential. As market conditions improve, Circle’s IPO represents a pivotal moment, not just for the company but for the broader stablecoin industry.
The nation now waits with bated breath for the SEC’s ruling, which will decide if Circle can ever realize its long-sought ambition of getting listed. If it gets the approval, it may pave the way for an army of crypto firms listing on the public market in the next several months.
