Circle is the crypto company that issues the stablecoin USD Coin (USDC). In July 2021the company specializing in crypto financial services had signed an agreement with Concord Acquisition Corpa special purpose acquisition company (SPAC). The partnership was to allow it to go public. Find out what happened to this deal.
The SEC did not give its approval to Circle
Private companies generally prefer to merge with SPACs or “blank check companies” for their IPO. They choose this solution because it is less costly and more advantageous than a traditional IPO. In this context, the private crypto company Circle has decided in 2021 to begin a process to go public through the SPAC Concord Acquisition Corp.
But that was without counting on the relentlessness of the Securities and Exchange Commission (SEC) against crypto companies. Indeed, the SEC did not grant Circle the necessary approval to “complete a business combination“. This was to be expected, with SEC Chairman Gary Gensler being adamantly against the crypto industry. So there was unlikely that the SEC will approve the request of the issuer of stablecoins.
Not surprisingly, Circle recently announcement cancel operation SPAC. The company thus puts an end to its collaboration with Concord Acquisition Corp. His boss Jeremy Allaire said: “Concord has been a strong partner and has added value throughout this process, and we will continue to benefit from the guidance and support of Bob Diamond and the entire Concord team.“.
Circle: One of the largest private crypto companies
Even though Circle cannot, for now, go public, it remains one of the most important private crypto companies. Currently, its stablecoin USD Coin (USDC) is fifth largest cryptocurrency by market capitalization. It also ranks second on the list of largest stablecoins.
Note that the market cap of Circle’s stablecoin is estimated at over $43 billion. In addition, in April, the crypto company had raised $400 million from major investors like BlackRock and Fidelity.
Jeremy Allaire said : “We are disappointed that the proposed transaction has expired, however, going public is part of Circle’s core strategy to build trust and transparency, which has never been more important.“.
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