Crypto developer Circle is set to join the ranks of publicly traded companies in a merger with Concord Acquisition (NYSE:CND), a special purpose acquisition company (SPAC). CND stock holders will get a cryptocurrency financial services firm with an expected value of $4.5 billion.
The merger comes a month after Circle raised $440 million in one of the largest funding rounds in crypto history. Another stablecoin issuer Paxos was valued at $2.4 billion after raising a $300 million Series D in April. Concord went public on the New York Stock Exchange in December through a $240 million initial public offering, according to a press release at the time.
USDC has taken off along with its other stablecoin peers, with a circulating supply of nearly $26 billion.
Circle SPAC Merger Expected to Close by Q4
USDC has also been at the center of several crypto market innovations, including a stablecoin product aimed at neobanks and fintech firms by lending market Compound that offers 4% interest on USDC deposits.
“As we look at what we’re building,” Circle founder and CEO Jeremy Allaire told CNBC earlier today. “We just see an incredible opportunity to grow, to grow rapidly and to grow around the world.”
A company presentation on the SPAC deal revealed an expected USDC circulation of $190 billion by 2023 – seven-fold growth from its current $26 billion. Circle’s deal with Concord is anticipated to close in Q4 2021, the firms said Thursday.
On the date of publication, Robert Lakin did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
InvestorPlace contributor Robert Lakin is a veteran financial writer and editor, including previous stints with Bloomberg News and as a buyside equity research editor. His Substack newsletter, TLV Strategist, covers the Israel business scene.