Reportedly, Circle, an issuer of stablecoins, intends to conduct an initial public offering (IPO) at the beginning of 2024.
Circle, a stablecoin issuer, reportedly intends to conduct an initial public offering (IPO) in early 2024, following in the footsteps of Coinbase (COIN) and other prominent cryptocurrency companies that have gone public. At this time, rumors indicate that discussions are underway in anticipation of a possible IPO.
Circle IPO: Before the Halving of Bitcoin?
Although the organization has yet to release the official announcement, Bloomberg has reported that internal deliberations are underway, suggesting uncertainty regarding the timeframe.“The company is talking to advisers as it prepares for a potential initial public offering,”.
Compared to the previous two years, the current climate for crypto companies to go public is comparatively favorable, owing to indications of market recuperation and a surge in the price of Bitcoin preceding the Bitcoin Halving event.
The development occurred mere months after Coinbase, an American cryptocurrency exchange, acquired a stake in Circle. The acquisition entailed a revenue-sharing model whereby Circle and Coinbase split the proceeds from the trading of USDC coins. it was disclosed that the exchange had amassed $151 million in second-quarter revenue from USDC.
Stablecoin Governance In the US
This occurs amidst considerable parliamentary discourse regarding the necessity of stablecoin regulation, with several legislators advocating for a streamlined procedure to oversee the operation of stablecoins pegged to the dollar.
The Clarity for Payments Stablecoin bill, enacted by the US House Financial Services Committee in July 2023, seeks to establish a comprehensive legal framework designed explicitly for stablecoins.
Currently, USD Coin (USDC) has a market capitalization of $24.43 billion, which ranks the stablecoin sixth among the leading cryptocurrencies in terms of valuation. In contrast, Tether USD (USDT), an alternative stablecoin, possesses a market capitalization of $86 billion.
Compared to the same period last year, the USDC total market size decreased by a staggering 68%, while the USDT market capitalization increased by over 21%.
In contrast to Bitcoin’s nearly twofold increase in value since the previous year, Microstrategy (MSTR) stock increased by more than 124% over the same time frame, owing to the organization’s proactive approach towards Bitcoin accumulation.
