Circle Internet Financial, which issued the USD Coin (USDC), is at a crossroads. They are in the process of preparing for a $5 billion IPO. At the same time, they are in talks to acquire major crypto players Ripple and Coinbase. Circle Internet also has to consider the rebounding crypto markets. The $250 billion stable coin sector is seeing more competition and regulation. What Circle does going forward may well restructure the future of digital finance. It will also affect the adoption of blockchain in financial services worldwide.
Circle has had three IPO attempts which had failed due to regulatory and market issues. In April 2025, the company put in a private S-1 to the SEC. It is set to trade on the New York Stock Exchange under the ticker “CRCL”. Also reported was 2024 revenue of $1.67 billion, which is a 16% increase from the year before. However, we also saw a 42% drop in net income, pointing to growing opex and compliance issues. Also leading the underwriting are J.P. Morgan and Citigroup, which is strong support. Despite this, Circle Internet Financial faces a market that is very volatile due to geopolitical and regulatory issues.
Circle Internet’s IPO Strategy and Financial Performance
Circle Internet’s revenue is very much a function of USDC. It is the primary driver of their income via interest on its reserve assets. USDC has a market cap of $60B, putting it as the 2nd largest dollar-stabilised stable coin behind Tether’s $110B. While we see growth in revenue, we are also seeing a drop in profitability. This is a result of higher costs and competition. The company has a conservative approach to reserve management. It includes short-term Treasuries and cash at regulated banks. This approach promotes transparency and regulatory compliance, which some competitors do not prioritize.
The regulatory environment is changing as we see the Senate pass the GENIUM Act. Although it brings clarity to stablecoin issues, it may also reduce interest paid out to token holders. Higher compliance costs are also a concern for Circle Internet. The SEC is taking a watchful approach. It is playing out in their review of stablecoin classification and structure. This may delay Circle’s IPO and affect investor confidence.
Acquisition Prospects and Market Implications
Parallel to their IPO plans, Circle Internet is also looking at acquisition options. Ripple put forth a $4-5 billion bid, including cash and XRP tokens. They aimed to integrate USDC into their XRP Ledger to improve cross-border payments. Circle’s board turned down the offer because it was for a lower valuation than what they are seeking. They are seeking around a $5 billion valuation. Since 2018, as part of the Centre Consortium, Coinbase has been in the picture as a possible buyer. A purchase by Coinbase may see a more seamless integration of the USDC into their platform. Coinbase’s dominant position in crypto trading might also play a role. However, it is put forth that regulatory issues related to antitrust may come up.
The stablecoin field is seeing an increase in competition. This is presented by PayPal’s PYUSD and JPMorgan’s JPM Coin. It comes after USDC’s 42% market share in 2023 fell to 35% in 2024. Also, we see in the industry a trend of consolidation as large players seek full control of the crypto financial stack. Circle Internet is central to this trend.
In time, Circle Internet will decide which path to take between public markets and acquisition. This decision will define not only the company’s future but also larger stablecoin and blockchain finance trends. What Circle does at this stage is very much in the spotlight for investors, regulators, and the crypto community. Indeed, Circle Internet is at a crossroads where stablecoins go from being niche players to key elements of financial infrastructure.
