USDC Issuer Circle Pauses IPO Plans amid Market Turmoil
Circle Internet Financial,the company behind the USDC stablecoin,has put its initial public offering (IPO) on hold. The decision comes as a response to the current market volatility.
Circle had planned to list on the New York Stock Exchange under the ticker “CRCL.” JPMorgan Chase & Co. and Citigroup Inc. were set to lead the underwriting process. Though, the company is now taking a cautious approach, as reported by the Wall Street Journal.
This delay mirrors a wider trend of companies rethinking their IPO timelines due to economic uncertainties. Circle confidentially submitted a draft registration statement to the U.S. Securities and Exchange Commission in January 2024. This followed an unsuccessful attempt to go public via a special purpose acquisition company merger in 2022.
Despite the postponement, Circle’s CEO, Jeremy Allaire, remains optimistic. In a Bloomberg interview, he said, “We are committed to going public. We believe we can be a compelling company in the public markets.”
The decision to delay the IPO reflects broader market conditions. Several companies are reassessing their public offering plans due to heightened market volatility.The U.S. dollar has declined against major currencies, and the yield curve has bull-flattened, signaling recession fears. Nansen analysts suggest that markets had anticipated a stagflationary scenario, with stagnant growth and rising inflation.
