BlackRock, one of the largest investment management firms in the world, is set to acquire approximately 10% of the shares in Circle’s upcoming initial public offering (IPO). This move comes as Circle, the company behind the popular USDC stablecoin, aims to raise $624 million through its IPO.
According to sources familiar with the matter, orders for the offering have already exceeded the number of shares available, with pricing scheduled for June 4. BlackRock’s involvement in the IPO is significant as the firm already manages the Circle Reserve Fund, which holds the majority of the reserves backing the USDC stablecoin.
The Circle Reserve Fund, which reported nearly $30 billion in net assets as of April 30, 2024, plays a pivotal role in ensuring the stability and liquidity of the USDC stablecoin. BlackRock’s stake in Circle could be acquired directly or through an affiliated entity, with the final participation subject to change.
In addition to BlackRock’s interest, the IPO filing also revealed a strong demand from other major institutional investors. This institutional participation underscores the growing interest in Circle and its USDC stablecoin, which boasts a market cap of $61.3 billion and a substantial year-to-date transfer volume of $10 trillion.
The decision to go public in the US market aligns with Circle’s efforts to strengthen its position in the crypto industry and capitalize on the increasing acceptance of digital assets by regulatory authorities. The move also marks a significant step for Circle, following a previously terminated Special Purpose Acquisition Company deal in 2022.
With institutional backing and a transparent regulatory framework, Circle is well-positioned to expand its operations and solidify its position as a key player in the crypto market. As the crypto industry continues to evolve, Circle’s IPO signifies a new chapter in its growth trajectory, paving the way for further innovation and development in the digital asset space.