Circle Internet Group raised US$1.1 billion in its IPO, pricing shares at US$31 each, above the marketed range.

The company and its shareholders sold 34 million shares, including CEO Jeremy Allaire.

The IPO values Circle at US$6.9 billion, with a fully diluted valuation near US$8.1 billion.

This marks a significant milestone after a US$7.7 billion valuation in 2022 and a previously canceled SPAC plan.

Circle’s USDC stablecoin controls 29% of the stablecoin market, with US$61 billion in circulation.

This comes amid possible new US regulations targeting stablecoins, which are digital tokens often tied to fiat currency.

Demand for the IPO was strong, exceeding 25 times available shares, pushing the share target and price higher.

Circle sold 14.8 million new shares, and selling shareholders sold 19.2 million shares.

Major investors include ARK Investment Management, interested in US$150 million of shares, and BlackRock, which plans to buy about 10%.

🔗 Source: Bloomberg

🧠 Food for thought

1️⃣ Stablecoins’ evolution from niche tools to mainstream financial infrastructure

Circle’s successful IPO represents a significant milestone in the evolution of stablecoins, which were originally created to mitigate cryptocurrency volatility by pegging their value to stable assets like fiat currencies1.

Since their introduction, stablecoins have grown from simple trading tools to essential financial infrastructure, with the total stablecoin market capitalization now exceeding $130 billion and daily trading volumes frequently surpassing $50 billion23.

This growth reflects broader utility, as stablecoins now form the backbone of decentralized finance (DeFi), with over 60% of total value locked in DeFi protocols involving stablecoins4.

Circle’s USDC currently holds approximately 20% market share, significantly behind market leader Tether (USDT), which dominates with over 65% of the market2.

Recent Circle developments