Key takeaways
- Circle’s IPO is proceeding as planned without the need for additional financing.
- Tether, Circle’s competing stablecoin issuer, faces allegations of facilitating illegal activity.
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Circle is financially strong and is on track to pursue a public listing without needing to raise additional funds, Circle CEO Jeremy Allaire said in a recent interview with Bloomberg.
“We are in a strong financial position and have been able to build a very strong business, and we are not currently seeking any financing,” Allaire said in a recent interview with Bloomberg.
The company behind the second-largest stablecoin USDC filed with the SEC earlier this year for a second offering to go public through an IPO. Its first attempt failed due to regulatory hurdles and crypto market turmoil following the collapse of FTX.
Circle’s IPO is expected to take place once the SEC completes its review. However, the ultimate success of Circle’s ambitious offering may depend on the SEC’s classification of USDC, its flagship product.
A June report from Barron’s indicated that the SEC had expressed concerns about whether USDC should be classified as a security, which could impact Circle’s operations and its ability to go public. If USDC is considered a security, Circle would face increased regulatory requirements and costs, which could delay its IPO plans.
Allaire said IPO plans remain strong as Circle expands its workforce in anticipation of new U.S. stablecoin regulations.
The United States is working to establish a regulatory framework for stablecoins. Although some bills have been proposed, such as the Lummis-Gillibrand Payment Stablecoin Act and the Clarity for Payment Stablecoins Act, these have not yet been passed into law.
Allaire nevertheless remains optimistic about potential legislative developments after the elections. The United States is ten days away from one of the most important events, and whoever wins the White House is expected to bring clarity to the emerging crypto 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 scrutiny from U.S. authorities over allegations of facilitating illegal activities .
Tether CEO Paolo Ardoino denied these claims. The company itself reaffirmed its active collaboration with law enforcement to combat illicit activities associated with its stablecoin.
Circle’s EURC is the largest euro-denominated stablecoin
Circle’s euro-backed stablecoin, EURC, reached a record supply of 91.8 million tokens, according to CoinGecko data. EURC’s market cap is approaching $100 million, with growth driven by strong activity on Ethereum’s layer 2 foundation.
Since becoming MiCA compliant, EURC has seen substantial growth, more than 2.5 times, according to Patrick Hansen, Circle’s senior director of European strategy and policy. The growth has positioned EURC as “the largest euro stablecoin by market capitalization,” he said.
New historic EURC high 💶 ✅
EURC is the largest euro stablecoin by market capitalization and its dominance continues to grow. For the first time, it exceeded the mark of 90 million euros of circulating supply.
Fueled by incredible growth across @base – now the channel with the highest amount of… pic.twitter.com/iY3J2RStY0
-Patrick Hansen (@paddi_hansen) October 24, 2024
Meanwhile, Tether’s euro-backed stablecoin, EURT, is lagging EURC due to the company’s ongoing challenges in the EU. Its market cap currently stands at around $27.5 million, per CoinGecko.
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