BlackRock Makes Power Play: Snags 10% of Circle in Surprise IPO Move

Wall Street’s quiet giant just made a crypto land grab—and nobody saw it coming.

BlackRock’s 10% stake in Circle’s IPO isn’t just a bet on stablecoins. It’s a hedge against the Fed’s printer going brrr—again.

Because when traditional finance finally ’gets’ crypto, they don’t dip a toe. They buy the whole damn pool.

TLDR

• BlackRock is planning to acquire 10 percent of Circle’s IPO shares.
• Circle is seeking to raise $624 million through its upcoming public offering.
• BlackRock already manages Circle’s Reserve Fund, which held around $30 billion in April 2024.
• The asset manager holds 90 percent of the reserves backing the USDC stablecoin.
• Coinbase and Ripple are still in talks to acquire Circle, despite the IPO plans.

BlackRock plans to purchase 10% of Circle’s IPO shares as the crypto firm targets a $624 million public raise. Bloomberg reported that the $11 trillion asset manager is expanding its cryptocurrency footprint through this strategic move. BlackRock’s increasing involvement in crypto signals growing confidence in stablecoin infrastructure and digital financial systems.

BlackRock Expands Crypto Holdings With Circle IPO Stake

BlackRock aims to significantly increase its exposure to crypto by acquiring a substantial portion of Circle’s IPO shares. The firm already plays a key role in Circle’s financial operations through its management of Circle’s Reserve Fund. According to recent SEC filings, Circle seeks to raise $624 million through its public offering.

Circle issues USDC, one of the largest stablecoins by market capitalization, backed primarily by U.S. dollar-denominated assets. BlackRock currently manages the Circle Reserve Fund, which holds approximately $30 billion as of April 2024. The asset manager also has 90% of the reserves backing USDC, giving it substantial influence.

BlackRock’s acquisition of IPO shares aligns with its broader efforts to strengthen its position in the digital asset sector. The firm’s move follows the successful launch of its iShares Bitcoin Trust (IBIT) earlier in 2024. IBIT became one of the most successful spot Bitcoin ETFs ever approved by U.S. regulators.

Continued Interest in Circle Despite IPO Plans

Circle remains a target for acquisition even as it prepares to list its shares publicly on the stock market. Coinbase and Ripple have expressed interest in acquiring the stablecoin issuer, and discussions are ongoing alongside the IPO preparations. Neither company nor Circle has confirmed or denied active talks regarding a potential sale.

These acquisition talks highlight Circle’s strategic value in the digital payments and blockchain infrastructure space. Market participants continue to monitor both the IPO and any potential merger or acquisition developments. Despite Circle’s public offering plans, discussions around ownership changes remain active.

BlackRock’s interest does not appear to interfere with ongoing acquisition talks involving Circle. The firm remains focused on strengthening its existing financial relationship with the USDC issuer. The MOVE to acquire IPO shares further embeds BlackRock in the evolving crypto financial landscape.

Strong Demand Signals From Institutional Participants

BlackRock is not the only major player aiming to invest in Circle’s IPO, with Ark Invest also reportedly planning a significant buy-in. Bloomberg sources stated that Cathie Wood-led Ark aims to purchase $150 million worth of shares in the offering. This suggests increasing demand from institutional participants for exposure to stablecoin-related infrastructure.

BlackRock’s move adds further credibility to USDC as a leading digital dollar alternative in global finance. It also reflects the growing overlap between traditional finance giants and blockchain-based financial platforms. As more institutional players enter the market, stablecoin adoption is expected to accelerate.