Circle CEO Jeremy Allaire confirmed that the stablecoin issuer remains committed to launching an initial public offering (IPO). Interestingly, these comments came amid a controversial report about Circle’s main rival Tether.
Circle Financial Standing Strong, No Need For Additional Funds, Says Circle Manager
In an interview with Bloomberg on Friday, Jeremy Allaire said that Circle’s plans to go public are still active and ongoing. Notably in January, the stablecoin operator behind USD Coin (USDC) filed a confidential draft IPO registration with the US Securities and Exchange Commission (SEC).
The move follows Circle’s failed attempt to merge with Concord Acquisition Corp., a blank check company in 2022, a move that would have expedited the process of going public with fewer regulatory hurdles than a traditional IPO.
In preparation for its potential IPO, Bloomberg notes that Circle has been expanding its workforce, largely in anticipation of the US Government putting in place a regulatory framework for the stablecoin. In particular, Allaire expressed a strong belief that US lawmakers may pass more bills for stablecoins after the general election in November before the newly elected officials are sworn in in January.
In addition, The Circle CEO assured the public of the company’s sufficient financial resources saying that there will be no need to obtain funds from private markets such as venture capital or private equity before the IPO.
Allaire says:
We are in a strong financial position and have been able to build a very strong business, and we are currently not looking for any funding.
As mentioned earlier, Circle acts as an issuer of USDC, a popular stablecoin with a market cap of 34.69 billion. With these market shares, USDC is ranked as the second largest stablecoin after Tether USDT, with a market capitalization of 120 billion.
Connecting to Trouble?
Amid reports of Circle’s IPO hopes, the Wall Street Journal reported that Tether is currently being investigated by US authorities for anti-money laundering violations. The WSJ said the Manhattan US Attorney’s Office is currently investigating the possible use of USDT by bad actors in drug trafficking, terrorism, and other illegal activities.
However, Tether has dismissed the report as containing “alleged negligence” without official confirmation. In particular, Tether CEO Paolo Ardoino said that there is no indication that the stablecoin operator is under any investigation while also expressing their commitment to preventing the illegal use of the USDT token.
After the WSJ’s previous report, the general crypto market showed a negative reaction, where Bitcoin fell more than 3% to trade around $66,000, thus showing the importance of USDT in the digital asset space.
According to the IPO, Ardoinio said that Tether is not interested in taking that route as he believes that an invitation to public investors could delay the development of the company and “disrupt the status quo”. In addition, Tether’s CEO said there is no need to raise capital for the foreseeable future as the company currently boasts more than $1 billion in assets on its balance sheet.
Featured image from Deniz Tutku, chart from Tradingview
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