Circle Internet, the US group behind the world’s second-largest stablecoin, has filed to list in New York, the first major cryptocurrency company to try for an initial public offering since President Donald Trump ushered in a more favourable environment towards digital assets.
The firm lodged its application with regulators for an IPO on the New York Stock Exchange late on Tuesday, having filed initial paperwork at the start of last year, after a previous attempt fell through in late 2022.
Tuesday’s filing shows Circle’s revenues on the reserves it maintains to back its USDC stablecoin jumped to $1.66bn last year, from $1.4bn in 2023. The group holds most of its reserves in a money-market fund run by BlackRock, and benefited from US interest rates of 5 per cent or more for most of last year as the Fed sought to fight inflation.
However, net income for last year fell to $156mn from $268mn in 2023, as operating expenses rose, while it paid $1bn in fees and transaction costs to incentivise companies such as crypto exchange Coinbase to use and distribute Circle’s stablecoins.
Circle’s renewed push for a listing comes as the industry aims to take advantage of a more favourable regulatory environment since the election of Trump, who has promised to make the US “the crypto capital of the planet” and growth of digital assets part of his administration’s policy.
However, stablecoin operators look set to earn less on their reserves, with markets pricing in a fall in US interest rates this year as concerns grow over the impact of Trump’s tariff plans on economic growth.
Stablecoins are a type of cryptocurrency that act as a form of cash but sit outside the banking system. They are used to pay for other crypto assets, as well as for goods and services, more quickly and cheaply than through banks and are usually pegged to the US dollar one-for-one.
Congress is debating legislation to set up a regulatory framework for US stablecoin operators, while since January the main US securities regulator has ended or halted most of the cases it was pursuing against crypto companies.
Jeremy Allaire, Circle’s chief executive, told investors that becoming a public company was “a continuation of our desire to operate with the greatest transparency and accountability possible”.
“But more than anything, going public now is representative of the fact that we are at a significant crossroads for Circle and the development of the internet financial system,” he added.
Circle has $60bn of tokens in circulation, up from $43bn at the end of last year, placing it behind market leader Tether, which has issued just over $144bn worth of coins.
This week’s filing marks a second attempt at a listing after a planned merger with a special purpose acquisition vehicle chaired by former Barclays chief Bob Diamond fell through in late 2022. A deal would have valued the company at between $7bn and $9bn.
The planned IPO also marks a significant recovery for the group, after it emerged as the largest creditor in failed Silicon Valley Bank in 2023. The company had $3.3bn of its reserves trapped in the bank, triggering a fall in the value of its token against the dollar, until US regulators moved to ensure the deposits at SVB were safe.
The resurgence of the crypto market since Trump’s election victory has led other digital assets companies to consider a stock market listing. Kraken, a US-based cryptocurrency exchange, is also working towards an IPO, which could take place next year, according to a person with knowledge of its plans.
Among Circle’s largest shareholders are private equity groups Accel, Breyer Capital, General Catalyst and fund manager Fidelity. JPMorgan Chase and Citigroup are leading the offering.
