Circle CEO, Jeremy Allaire has confirmed that the stablecoin issuing company remains committed to launching an initial public offering (IPO). Interestingly, these comments come amid a controversial report about Circle’s biggest competitor Tether.

Circle has a strong financial position, no need for additional money, says Circle Boss

In one interview with Bloomberg on FridayJeremy Allaire stated that Circle’s plans to go public are still in place and ongoing. Notably, in January, the stablecoin operator behind the USD Coin (USDC) submitted a confidential draft registration for an IPO with the US Securities and Exchange Commission (SEC).

The filing came after Circle’s failed attempt to merge with blank-check company Concord Acquisition Corp. in 2022, a strategy that would have accelerated the process of going public with fewer regulatory hurdles than a traditional IPO.

In preparation for its potential IPO, Bloomberg notes that Circle has been expanding its workforce, especially in anticipation of the installation of a stablecoin regulatory framework by the US government. In particular, Allaire expressed strong belief that US lawmakers could approve some of them stablecoins notes after the general election in November, before newly elected officials are sworn in in January.

Furthermore, The Circle’s CEO has assured the public of sufficient financial resources from the company, stating that there will be no need to raise funds from private markets such as venture capital or private equity prior to the IPO.

Allaire said:

We are in a financially strong position and have been able to build a very solid business, and we are not currently seeking financing

As previously mentioned, Circle operates as the issuing company of USDC, a popular stablecoin with a market cap of $34.69 billion. These market shares make USDC the second largest stablecoin after Tether USDT, which has a market capitalization of $120 billion.

Tether in trouble?

Amid reports of Circle’s optimism about an IPO, media company Wall Street Journal reports reported that Tether is currently under investigation by US authorities for anti-money laundering violations. WSJ stated that the US Attorney’s Office in Manhattan is currently evaluating the possible use of USDT by bad actors in drug trafficking, terrorism and other illegal activities.

However, Tether has spoken out against this report, which the company says contains “reckless allegations” without confirmation from authorities. In particular Paolo Ardoino, CEO of Tether has stated there is no indication that the stablecoin operator is subject to any investigation, while also expressing its commitment to prevent illegal use of the USDT token.

Following WSJ’s earlier report, the overall crypto market showed a negative reaction, with Bitcoin falling over 3% to trade around $66,000, illustrating USDT’s importance in the digital asset space.

In terms of an IPO, Ardoinio has stated that Tether has no interest in going that route because it believes an invitation to public investors could slow down the company’s development and “disrupt the status quo.” Furthermore, Tether’s CEO has stated that there is no need to raise capital in the near future as the company currently has over 1 billion in cash on its asset balance.

Circle
Total crypto market cap valued at $2.227 trillion on daily chart | Source: TOTAL chart on Tradingview.com

Featured image by Deniz Tutku, chart from Tradingview

By newadx4

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