Stablecoin issuer Circle plans legal base shift to US ahead of IPO

As a researcher with experience in the fintech industry, I believe that Circle’s decision to move its legal base from Ireland back to the US, ahead of an anticipated IPO, is a strategic one. The company’s filing for re-domiciliation comes after months of preparation, including the confidential submission of plans to the SEC for an initial public offering.

Circle, the company behind the USDC stablecoin, is considering shifting its headquarters from Ireland to the United States in preparation for an upcoming initial public offering (IPO).

Circle, the stablecoin issuer, is in the process of relocating its legal headquarters from Ireland to the United States in preparation for an upcoming initial public offering (IPO).

Based on a Bloomberg article published on May 15, Circle, the well-known stablecoin issuer, has submitted court documents for “re-domiciling,” as confirmed by a Circle representative. The spokesperson refused to provide further details regarding this development. Previously in January, Circle confidentially applied to the U.S. Securities and Exchange Commission (SEC) for an initial public offering (IPO), following a lengthy lull in such deals due to unstable markets.

As a crypto investor, I can tell you that Initial Public Offerings (IPOs) have historically provided a means for companies to secure additional funds, which they can then utilize to enhance their operations and broaden their market reach. In the case of Circle, becoming a public company could bring a substantial financial boost. This infusion of resources could be channeled towards the promotion of USDC, our stablecoin, and the strengthening of its position against USDT, another stablecoin issued by Tether, in the competitive crypto market.

Circle’s IPO details, such as the quantity of shares to be made available and the proposed price range, have yet to be revealed. Originally intending to go public in July 2021, the Boston-based company instead opted for a deal with Concord Acquisition Corp. in 2022, which valued it at $9 billion. However, this anticipated Special Purpose Acquisition Company (SPAC) transaction did not come to fruition due to the U.S. Securities and Exchange Commission (SEC) declining to approve the filing.

Circle opted for Ireland as its European base due to its advantageous tax conditions, aligning with other tech heavyweights such as Coinbase, Apple, Google, and Facebook, who have similarly set up their EU headquarters there.

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2024-05-15 11:11