USDC Issuer Circle Raises $1.1B in Its IPO (Report)

Circle, the issuer of the USDC stablecoin, has raised $1.1 billion in its initial public offering (IPO), which was priced above expectations.

The development comes as the U.S. Congress is currently reviewing federal legislation on stablecoins.

Circle’s Valuation Could Hit $6.2 B

According to a Bloomberg report, Circle’s IPO is likely to price above its marketed range after attracting demand for more than 25 times the number of shares available in the upsized deal.

Based on figures in the company’s latest filing with the U.S. Securities and Exchange Commission (SEC), the stablecoin issuer and several of its backers planned on raising $896 million at the top of the $27 to $28 price range.

People familiar with the matter revealed that Circle and the selling shareholders are offering 32 million shares in the deal. Notably, this figure is up from 24 million shares provided earlier at $24 to $26 each. They also said that most shares will go to investors who plan to hold the stock long-term. However, deliberations are ongoing, and the company may still price the investment within the original range.

CoinGecko data shows that Circle’s USDC had about a 29% share of the stablecoin market as of March this year. At the high end, the firm would have a market cap of nearly $6.2 billion. Bloomberg estimates show that when factoring in options, restricted stock units, and warrants, its fully diluted valuation would also rise to around $7.2 billion.

The anonymous sources also indicated that the IPO will be priced on Wednesday evening in New York. Meanwhile, JPMorgan Chase, Citigroup, and Goldman Sachs are serving as lead underwriters. The offering is expected to begin trading on the New York Stock Exchange under the ticker symbol CRCL.

ARK and BlackRock Show Interest

The IPO has allegedly already attracted interest from major investors. The report notes that ARK Investment Management, led by Cathie Wood, showed intentions of acquiring up to $150 million in shares. On the other hand, BlackRock plans to buy about 10% of the offering.

This development coincides with growing attention in Washington on stablecoins as lawmakers push forward legislation to govern the sector.

Two key bills, the STABLE Act and the GENIUS Act, are currently advancing through the House and Senate. On April 2, the U.S. House Financial Services Committee passed the former, which now needs to get a full House vote and then a Senate vote in its next stages of approval into law.  Meanwhile, the latter advanced in a 66-32 Senate vote on May 20 and will now proceed to the next legislative stage.

If enacted into law, these bills would give stablecoins greater legitimacy, encouraging institutional adoption while mitigating risks associated with unregulated digital currencies.