Bloomberg: USDC market share declines, Circle IPO plan may face challenges

As the market share of its main product USDC stablecoin continues to shrink, Circle’s IPO plan faces difficult challenges. USDC’s market share dropped to less than 19%, far below the value it held when the company withdrew its public listing in December last year. Meanwhile, Circle has begun discussions with advisers to consider an IPO early next year. Due to its close connection with the US banking system, Circle's credibility was damaged after the bankruptcy of Silicon Valley Bank, resulting in a significant reduction in USDC circulation. Circle and rival Tether both make money by investing the reserves underpinning their stablecoins ($24 billion and $87 billion, respectively) in assets such as U.S. Treasuries, but USDC's declining market share leaves Circle facing a bigger IPO challenge . Although Circle has received support from institutions such as Goldman Sachs Group Inc., the market still has doubts about its long-term profitability and competitiveness. (Bloomberg) According to previous news, people familiar with the matter said that Circle Internet Financial Ltd., the issuer of stable currency USDC, is considering listing in early 2024. The company is in discussions with advisers to prepare for a potential initial public offering. Relevant deliberations are still ongoing, and it is uncertain whether Circle will eventually continue to be listed. While it's unclear what valuation Circle is seeking in an IPO, the company is valued at $9 billion when it attempts to go public in 2022 through a merger with special purpose acquisition company Concord Acquisition Corp. A Circle representative said: "Becoming a U.S. public company has long been part of Circle's strategic vision, but we do not comment on rumors."