Circle Raises $1.1B in IPO Amid Stablecoin Regulatory Scrutiny

Circle, the issuer of the USDC stablecoin, has secured $1.1 billion in its initial public offering, surpassing expectations with pricing above its marketed range. Demand for shares exceeded availability by 25 times, prompting an upsized offering of 32 million shares—up from the initially planned 24 million. Long-term investors are expected to hold the majority of shares, though final pricing may still align with the original $24-$26 range.

The IPO arrives as U.S. lawmakers deliberate federal stablecoin legislation, highlighting the growing intersection of crypto and traditional finance. With USDC commanding 29% of the stablecoin market, Circle's valuation could reach $6.2 billion at the high end of its pricing range. Bloomberg estimates suggest a fully diluted valuation would climb further when accounting for options and warrants.

Market observers note the offering's success reflects institutional confidence in stablecoins despite regulatory uncertainty. Circle's positioning as a compliant operator may prove advantageous as policymakers shape the future of dollar-pegged digital assets.