Circle Internet Group Inc., a prominent player in the stablecoin sector, completed a successful initial public offering (IPO), raising nearly $1.1 billion in an upsized deal that pushed the share price above its initial range.
The strong market reception is being viewed as a meaningful sign of growing acceptance and the increasing legitimacy of stablecoin issuers within the broader financial landscape.
Circle and some of its existing shareholders, including co-founder and CEO Jeremy Allaire, sold a total of 34 million shares on Wednesday at $31 per share, according to a filing confirming earlier Bloomberg News reporting.
That pricing places Circle’s market capitalization at roughly $6.9 billion based on shares outstanding as detailed in its regulatory filings.
Including employee stock options, restricted stock units and warrants, the company’s fully diluted valuation is about $8.1 billion.
Investor interest underscored the IPO’s success.
People familiar with the matter said the upsized offering drew demand of more than 25 times the available shares by the time order books closed on Tuesday.
That overwhelming demand prompted Circle to increase both the size and the price of its IPO earlier in the week.
On Monday the company raised its target to 32 million shares with a price range of $27 to $28 per share, a notable increase from an earlier plan to sell 24 million shares in a $24 to $26 range, according to prior filings.
In the final tally, Circle itself sold 14.8 million shares in the IPO, while selling shareholders sold the remaining 19.2 million shares.
Regulatory tailwinds and rising institutional interest
Circle’s successful IPO comes at a pivotal moment for stablecoins—digital tokens typically pegged to fiat currencies such as the U.S. dollar.
Legislation currently under consideration in the U.S. Congress aims to regulate these assets, which many observers expect will grant them greater legitimacy and could pave the way for broader adoption.
At the same time, an evolving regulatory landscape may attract powerful new competitors. Last month The Wall Street Journal reported that several major Wall Street banks are jointly exploring issuing their own stablecoins.
Circle’s flagship product, USDC, accounted for roughly 29% of the stablecoin market as of the end of March, according to CoinMarketCap data cited in the company’s filing.
As of May 29, about $61 billion worth of USDC was in circulation, Circle’s website reported.
The IPO attracted notable institutional interest. ARK Investment Management, a technology-focused investment firm founded by Cathie Wood, filed to buy up to $150 million worth of shares in Circle’s offering.
BlackRock Inc., the world’s largest asset manager, was reported to be planning to purchase roughly 10% of the IPO, according to people familiar with the matter.
That interest is notable given existing ties between BlackRock and Circle: BlackRock manages a public money-market fund on behalf of Circle that holds about 90% of the reserves backing the USDC stablecoin.
Circle reported its Reserve Fund balance at $53.3 billion as of May 29.
Circle’s path to the public markets
The IPO marks a major milestone for Circle.
PitchBook valued the company at $7.7 billion after a 2022 funding round.
Circle initially filed confidentially to go public in early 2024, more than a year after abandoning a prior plan to go public via a special-purpose acquisition company (SPAC).
That earlier SPAC deal had implied a valuation of about $9 billion.
The current IPO was led by a consortium of Wall Street firms including JPMorgan Chase & Co., Citigroup Inc. and Goldman Sachs Group Inc.
Shares of Circle are expected to begin trading on the New York Stock Exchange under the ticker CRCL on Thursday.