Circle Charges Toward $7.2B IPO as Crypto Bulls Stampede

The stablecoin giant’s public debut heats up—Wall Street smells blood in the water after last year’s crypto winter.

From basement to boardroom

Once a regulatory punching bag, Circle now flaunts investor demand strong enough to make traditional fintechs sweat. That $7.2B target? A flex against skeptics who wrote off stablecoins as a 2022 fad.

The cynical take

Bankers will underwrite anything with a pulse and a blockchain these days—just don’t ask about the ’stable’ part if Tether sneezes.

Why Circle upped its IPO

Circle’s decision to expand the IPO comes amid rising institutional interest in stablecoins and growing regulatory clarity.

Market analysts say the stablecoin sector, long considered a niche industry, is entering a new phase of mainstream relevance due to its rising adoption and trust beyond the crypto-native crowd.

As a result, legacy financial institutions like JPMorgan, Citigroup, and others are warming up to stablecoins by exploring a jointly issued dollar-backed asset.

Another substantial evidence of institutional interest in stablecoins is that BlackRock, the world’s biggest asset manager, is one of the largest potential buyers of Circle’s stock.

Sources familiar with the matter say BlackRock intends to purchase roughly 10% of the IPO shares. If that plan materializes, it would further deepen the relationship between the two firms.

BlackRock already plays a key role in managing Circle’s USDC reserves through the Circle Reserve Fund, which holds about 90% of the stablecoin’s backing assets.

However, a stake in Circle would expose the asset manager to the broader stablecoin market and expand its interest in the crypto scene beyond ETFs.