Stablecoin issuer Circle kicks off its IPO, targeting a nearly $6 billion valuation

Circle, the issuer of the popular USDC stablecoin, has begun its long-awaited initial public offering process, looking to raise about $624 million at a valuation around $6 billion.

The company, led by CEO Jeremy Allaire, said Thursday in a filing that it plans to sell 24 million shares of Class A common stock in total – 9.6 million to be sold by the company and another another 14.4 million by existing shareholders – at an expected price range of $24 to $26 apiece, valuing the company at around $5.65 billion. It would have a valuation of about $6.7 billion when including outstanding options and other stock, according to Reuters.

Cathie Wood’s ARK Investment Management has indicated interest in purchasing up to $150 million of the shares, per the filing. Circle also said it will grant the underwriters a 30-day option to purchase up to 3.6 million additional shares.

Shares will be listed on the New York Stock Exchange under the ticker CRCL. Circle’s IPO prospectus was filed with the Securities and Exchange Commission at the beginning of April.

Circle’s USD Coin (USDC) has roughly $62 billion in circulation and makes up about 27% of the total market cap for stablecoins, behind Tether’s 67% dominance, according to CryptoQuant. Its market cap has grown 40% this year, however, compared with Tether’s 10% growth.

The stablecoin sector specifically has been ramping up as the industry gains confidence that the crypto market will get its first piece of U.S. legislation passed and implemented this year, focusing on stablecoins. Last week, the Senate voted to advance the first crypto legislation, which would create a regulatory framework for stablecoins. Trump has said he wants to see crypto regulation on his desk and ready to sign by August before Congress goes into recess.

Circle’s IPO could have investment implications for Coinbase, a cofounder of USDC and major distribution vehicle for the stablecoin. The crypto services company and exchange has a 50% revenue sharing agreement with Circle and also makes 100% of the interest earned by USDC products on the Coinbase platform. 

Coinbase CEO Brian Armstrong has said Coinbase has a “stretch goal” to make USDC the number 1 stablecoin in the world.

Historically, stablecoins have been used primarily for trading and as collateral in decentralized finance (DeFi), and crypto investors watch them closely for evidence of demand, liquidity and activity in the market. More recently, their ability to move dollars quickly and cheaply across borders has become more popular with banks and fintech companies.

Additionally, rhetoric around their ability to help preserve U.S. dollar dominance – by exporting dollar utility internationally and ensuring demand for U.S. government debt, which backs nearly all dollar-denominated stablecoins – has grown louder.

This story has been updated with further detail on Circle’s valuation.

—CNBC’s Nick Wells contributed reporting