Important points
Circle’s IPO will continue as planned without the need for additional financing. Tether, a stablecoin issuer that competes with Circle, faces charges of aiding and abetting illegal activity.
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Circle CEO Jeremy Allaire said in a recent interview with Bloomberg that Circle is financially strong and on track to go public without raising additional capital.
“We are in a strong financial position and have been able to build a very solid business. We are not currently seeking financing,” Allaire said in a recent interview with Bloomberg.
The company, which operates the second-largest stablecoin USDC, filed with the SEC earlier this year to go public for a second time via an IPO. That first attempt failed due to regulatory hurdles and turmoil in the crypto market following the collapse of FTX.
Circle’s IPO is expected to take place after the SEC completes its review. But the ultimate success of Circle’s ambitious bid may depend on the SEC’s classification of its flagship product, USDC.
According to a June report in Barron’s, the SEC has expressed concerns about whether USDC should be classified as a security, which could impact Circle’s operations and ability to list. If USDC were considered a security, Circle would face increased regulatory requirements and costs, which could delay its IPO plans.
Allaire said plans to go public remain strong as Circle expands its workforce in anticipation of new U.S. regulations for stablecoins.
The United States is working towards establishing a regulatory framework for stablecoins. Several bills have been proposed, including the Lummis-Gillibrand Payment Stablecoin Act and the Clarity for Payment Stablecoins Act, but have not yet been enacted.
Still, Allaire is optimistic about the possibility of post-election legislation. The United States is 10 days away from one of its most important events, and whoever wins the White House is expected to bring transparency to the emerging cryptocurrency industry and foster its development.
While Circle remains focused on its IPO plans, Tether, the force behind the world’s leading stablecoin USDT, is reportedly facing increased scrutiny from US authorities for allegedly aiding and abetting illegal activity. .
Tether CEO Paolo Ardoino denied these claims. The company itself reaffirmed its commitment to actively cooperating with law enforcement agencies to combat illegal activities related to stablecoins.
Circle’s EURC is the largest euro-denominated stablecoin
Circle’s euro-backed stablecoin EURC has reached its highest ever supply of 91.8 million tokens, according to data from CoinGecko. EURC’s market capitalization is approaching $100 million, with growth fueled by strong activity in Ethereum’s Layer 2 base.
Since achieving MiCA compliance, the EURC has experienced significant growth, increasing by more than 2.5 times, according to Patrick Hansen, Senior Director of the EU Strategy and Policy Circle. This growth has established EURC as “the largest euro stablecoin by market capitalization,” he said.
New highest value in EURC history💶 ✅
EURC is the largest euro stablecoin by market capitalization and its dominance is growing. Distribution supply exceeds 90 million euros for the first time.
Driven by phenomenal growth, @base – Currently, the chain with the highest volume is… pic.twitter.com/iY3J2RStY0
— Patrick Hansen (@paddi_hansen) October 24, 2024
Meanwhile, Tether’s euro-backed stablecoin, EURT, is lagging behind EURC as the company faces continued challenges in the EU. According to CoinGecko, its market capitalization is currently around $27.5 million.
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