Circle plans to go public via a SPAC merger. The company behind USDC has been valued at $4.5 billion.
The company will be tradable under the ticker CRCL
Instead of filing an Initial Public Offering (IPO), Circle will merge its business with Concord Acquisition Corp, a publicly-traded Special Purpose Acquisition Corporation (SPAC).
SPACs are shell companies that allow private companies to go public without going through the complex IPO process. Circle has announced that the deal values the company at $4.5 billion. After the stock is public, the IPO, the shares of the combined company will be tradable on the New York Stock Exchange under the ticker symbol CRCL.
USDC has grown from a market cap of around $1 billion to $25 billion today
Under Circle’s management, the stable coin USDC has grown from a market cap of around $1 billion a year ago to $25 billion today. The stable coin was launched by Centre, a joint initiative with Coinbase, but is managed by Circle on a daily basis.
Circle also debuted a savings product that could bring more significant financial players into the crypto market. Compound launched a USDC product targeting institutional investors and fintech firms, offering 4% interest on USDC deposits.
According to Circle’s announcement, USDC has backed more than $785 billion in on-chain transactions. Currently, USDC has 25 billion in circulation, and the company believes USDC will have 190 billion in circulation by the end of 2023. And Circle plans to leverage USDC’s popularity to build financial services that use USDC.