Circle CEO Jeremy Allaire confirmed that the stablecoin issuer continues to work on launching an initial public offering (IPO). Interestingly, these comments come amid a controversial report about Tether, Circle’s biggest competitor.
Circle boss says Circle is in strong financial position and does not need additional funding
In an interview with Bloomberg on Friday, Jeremy Allaire said Circle’s plans to go public are still in the works. In particular, in January, the stablecoin operator that operates USD Coin (USDC) submitted a confidential registration draft for an IPO to the U.S. Securities and Exchange Commission (SEC).
The filing follows Circle’s failed attempt to merge with blank check company Concord Acquisition Corp. in 2022, and the process of going public with lower regulatory hurdles than a traditional IPO. It was a strategy to hasten the
Bloomberg notes that Circle is expanding its workforce in preparation for a potential IPO, especially in anticipation of the U.S. government introducing a regulatory framework for stablecoins. In particular, Allaire expressed strong belief that U.S. lawmakers could pass some stablecoin legislation after the November general election and before newly elected officials are sworn in in January. did.
Additionally, The Circle’s CEO assured the public of the company’s sufficient financial resources, stating that there is no need to raise funds from private markets such as venture capital or private equity ahead of the IPO.
Mr Allaire said:
We are in a strong position financially and have been able to build a very solid business. We are not currently seeking funding.
As previously mentioned, Circle operates as the issuer of USDC, a popular stablecoin with a market capitalization of $34.69 billion. These market shares rank USDC as the second-largest stablecoin after Tether USDT, which has a market capitalization of $120 billion.
Having trouble with your tether?
While Circle is reported to be optimistic about an IPO, the Wall Street Journal reported that Tether is currently under investigation by US authorities for anti-money laundering violations. WSJ said the Manhattan federal prosecutor’s office is currently evaluating the potential use of USDT by bad actors in drug trafficking, terrorism, and other illegal activities.
However, Tether pushed back against the report, saying it contained “reckless claims” without confirmation from authorities. In particular, Tether CEO Paolo Ardoino stated that there is no indication that the stablecoin operator is under investigation, and at the same time expressed efforts to prevent fraudulent use of USDT tokens.
Following WSJ’s earlier report, the entire crypto market reacted negatively, with Bitcoin down more than 3% to trade around $66,000, highlighting the importance of USDT in the digital asset space. It shows.
Regarding the IPO, Ardoinio said Tether is not interested in taking that route as he believes inviting public investors could slow down the company’s development and “disrupt the status quo.” Additionally, Tether’s CEO stated that the company currently boasts over $1 billion in cash on its asset balance sheet, so there is no need to raise capital in the near term.
Cryptocurrency market capitalization is equivalent to $2,227 billion on daily chart | Source: TOTAL chart of Tradingview.com
Featured image from Deniz Tutku, chart from Tradingview
