Home News Stablecoin firm Circle to go public in $4.5B blank-check deal

Stablecoin firm Circle to go public in $4.5B blank-check deal

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The issuer of one of the largest stablecoins pegged to the USDC – Circle will go public through a merger with a specialized company SPAC called Concord Acquisition Corp.

SPAC – are shell companies that help private firms go public without going through the complicated IPO process.

As part of the deal, Circle valued at $ 4.5 billion. After the company goes public, its current shareholders will retain about 86%. As a result of the deal, Circle will receive about $ 1.1 billion. This amount consists of $ 276 million raised by Concord on the stock exchange, bond financing and private investments for $ 415 million, in which the hedge fund Marshall Wace, Katie Wood’s investment company ARK Investment Management, and also the management companies Fidelity and Adage Capital Management.

Under the agreement, the new Irish holding company will acquire Concord Acquisition Corp and Circle and become publicly traded under the ticker CRCL on the New York Stock Exchange.

The merger will bring Circle $ 691 million in support of growth and new product development.

Upon completion of the transaction, Circle will become the world’s first publicly traded stablecoin company. Previously, Coinbase went public, although it chose Nasdaq for listing. Other crypto companies, such as eToro or Kraken, may also go public.

Circle – the issuer of the USD Coin (USDC)

Circle founded in 2013 by Jeremy Allaire. The company provided services for the storage and trading of digital assets. In 2015, Circle licensed by the State of New York to conduct cryptocurrency transactions. In February 2018, the company bought the Poloniex crypto exchange. Since 2015, Goldman Sachs has become one of Circle’s investors. The investment bank invested $ 50 million in the company.

Circle co-founder Jeremy Allaire will remain as CEO of the company. With Concord Acquisition Corp chairman Bob Diamond joining the board. The deal will be closed in Q4 2021.

Circle is the issuer of the USD Coin (USDC) stablecoin, which pegged at a 1:1 ratio to the US dollar and used by various cryptocurrency exchanges, fintech clients and DeFi users around the world. So, USDC is coming to more and more blockchains, Visa recently added USDC stablecoin settlement option on the Ethereum blockchain, and SEBA Swiss bank added stablecoin support. Circle recently supported the deployment of USDC on Tron and other blockchains are in development. The development of the USDC helped it become the world’s second stablecoin and one of the ten largest cryptocurrencies. Now the capitalization of USDC is $ 25,943,904,423.

“Circle was founded with the goal of transforming the global economic system with digital currencies and the open internet”, said co-founder and CEO Jeremy Allaire.

The listing on the stock exchange will provide Circle with the “capital and connections” to achieve this mission, he said. He noted that the company will enable businesses around the world to connect to a “more open, inclusive and efficient economic system”.

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