Circle to Relocate to the U.S. Before Going Public

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As a researcher with experience in the fintech industry and a background in tax policy, I’m closely following Circle Internet Financial Ltd’s decision to relocate its legal headquarters from the Republic of Ireland to the United States. Based on the available information, it seems that this move is in line with Circle’s plans to go public in the U.S., as they submitted their IPO papers in January.

Circle Internet Financial Ltd is planning to relocate its legal base from the Republic of Ireland to the United States. A representative for the company announced that this decision corresponds with their intentions to hold an Initial Public Offering (IPO) in the US, which were filed in January.

Circle’s move could result in the company being subject to greater corporate tax liabilities in the United States, marking a change from the lower Irish taxes that have historically drawn multinational corporations such as Apple Inc. and Pfizer Inc. However, recent tax reforms spearheaded by the OECD have mandated a minimum 15% tax rate on international profits. Circle’s primary business revolves around USDC, with a market capitalization of $33 billion. The issuance peaked at approximately $56 billion in June 2022 but subsequently declined post-crisis, specifically due to the collapse of Silicon Valley Bank in the U.S.

As a crypto investor, I’ve noticed that the circulation of USDC reached new heights this year, peaking at around $24 billion. This surge can primarily be attributed to the rebounding cryptocurrency market as a whole. Stablecoins, designed to maintain a stable value by being pegged 1:1 to fiat currencies, have been gaining traction. They are backed by cash and bond reserves for added security.

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2024-05-15 12:36