The issuer of USDC, Circle, has officially submitted an IPO application, which may become a milestone in the development of stablecoins.

Circle is the issuance party of USDC and plans to list its Class A common stock on the New York Stock Exchange under the stock code ‘CRCL’.

Source: cryptoslate

Translation: Blockchain Knight

According to a document submitted to the U.S. Securities and Exchange Commission (SEC) on April 1, Circle has officially filed an S-1 application for an initial public offering (IPO).

Circle is the issuer of USDC and plans to list its Class A common stock on the New York Stock Exchange under the ticker symbol “CRCL.”

According to the prospectus, Circle will offer an undisclosed number of Class A common shares, while certain existing shareholders will also register shares for sale. The expected price range per share has not yet been determined.

The proceeds from the sale of shares by Circle will belong to the company, while the proceeds from the sale of shares by existing shareholders will not belong to the company. The underwriters, led by JPMorgan and Citigroup, have a 30-day option to purchase additional shares to cover over-allotments.

The financial data contained in this submission document provides the most detailed view of Circle’s recent performance.

As of the fiscal year ending December 31, 2023, the company’s total revenue and reserve income reached 1.68 billion USD, up from 1.45 billion USD in 2023 and 772 million USD in 2022.

Most of the revenue in 2024 comes from interest reserve income related to USDC-backed assets. The total operating expenses for 2024 amount to USD 491.7 million, most of which is allocated to salaries (USD 263.4 million), general and administrative expenses (USD 137.3 million), and information technology infrastructure (USD 27.1 million).

The net income from continuing operations in 2024 is $156.9 million, down from $271.5 million in 2023, but significantly improved from a loss of $761.8 million in 2022. The adjusted EBITDA for 2024 is $284.9 million.

Circle also recorded a loss and impairment of $4.3 million in digital assets and reported $54.4 million in other income, mainly from gains unrelated to its core business.

The registration draft has not yet determined the company’s weighted average number of outstanding shares and earnings per share figures.

As stated in the prospectus, Circle plans to use the proceeds from the IPO for general corporate purposes, including product development, operating capital, business expansion, and potential acquisitions. The timeline for IPO pricing and share allocation has not yet been disclosed.

After the listing, the company will adopt a three-tiered equity structure. The Class A shares offered in the IPO each carry one vote. The Class B shares held by co-founders Jeremy Allaire and Patrick Sean Neville each carry five votes, but the total voting power is capped at 30%.

Class C shares have no voting rights and may be converted under certain circumstances. Class B shares convert to Class A shares when transferred beyond the permitted channels.

This structure ensures that Circle will not be classified as a “controlled company” under the governance rules of the New York Stock Exchange after going public.

Before Circle submitted this document, its listing plan had been delayed multiple times, including the termination of a merger with a special purpose acquisition company (SPAC) in 2021. This issuance represents its first attempt at a traditional IPO.

This document confirms that Circle’s shares have not been publicly traded before. The company’s listing plan comes at a time when the adoption rate of stablecoins is continuously increasing and regulatory agencies are showing growing interest in digital dollar infrastructure.

Circle’s IPO is still subject to regulatory review and is influenced by market conditions. Pricing details, including the number of shares and the valuation per share, will be disclosed in updated documents prior to the listing date.