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USDC Stablecoin Provider Circle Discloses Reserves, Plans Q4 Public Listing

  • USD Coin (USDC-USD) provider Circle is announcing its intention to list publicly in the fourth quarter of 2022.
  • Circle signed a $4.5 billion special purpose acquisition company (SPAC) deal in July 2021.
  • The company is also disclosing its reserves, which contain only cash and Treasury bonds.
USDC stablecoin - USDC Stablecoin Provider Circle Discloses Reserves, Plans Q4 Public Listing

Source: Gorev Evgenii / Shutterstock.com

USD Coin (USDC-USD) is one of the most popular stablecoin offerings in the world. It underlies dozens upon dozens of exchanges, and it has managed to largely avoid many of the tumultuous situations its main competitor, Tether (USDT-USD), has found itself in. This month, USDC is shoring up its reserves, making for good news in its own right. But fans of the USDC stablecoin are getting more great news: Its parent company, Circle, is expecting to go public by the end of the year.

USDC was launched in late 2018 by Circle and Coinbase (NASDAQ:COIN). One of the primary uses for the coin is in underlying Coinbase trading activity. Since Coinbase hadn’t supported stablecoins up to that point, the launch marked the first time one could buy and sell crypto using a currency that remains pegged to the U.S. dollar (USD). Since then, though, it has grown to be much more than that. Now, users spend billions of dollars in USDC across thousands of dapps, exchanges and DeFi platforms.

One of the bigger crypto stories in recent days is Circle’s new reserve report. Unlike many stablecoin providers, Circle provides semi-regular insights into the reserves which keep the price of a USDC pegged to $1.

While other stablecoin companies get their reserves in many different forms, some types of reserves can be quite controversial. Tether has gotten in trouble with investors in recent months when it came to light that the company used commercial paper as reserves.

In its report this month, Circle is showing only cold, hard cash and Treasury bonds making up its own reserves. The news shows USDC is only collateralized with the safest reserves. Moreover, it shows that USDC is even over-collateralized; Circle holds $55.7 billion in reserves to USDC’s 54.7 billion supply.

USDC Company Circle Plans Q4 Public Listing

Circle’s big USDC stablecoin reserve news is great. But, what the company is really getting the spotlight for today is an interview with Circle’s Chief Financial Officer (CFO). He says the company is getting ready to be one of the few trailblazing crypto companies to go public on Wall Street.

In an interview with Decrypt, Circle CFO Jeremy Fox-Geen talks about a lot of the company’s goings-on. Topics range from Circle’s yield generating tool to its finances in the wake of the crypto crash to the Terra Classic (LUNC-USD) collapse. But far and away, the most interesting bit from this interview is the hint of a public listing.

Last year saw the company agree to a $4.5 billion SPAC deal with Concord Acquisition (NYSE:CND). Investors haven’t seen much since then, but Fox-Geen says Circle expects this process to finish up in the fourth quarter.

As of right now, the filing is still under review with the Securities and Exchange Commission (SEC), which periodically publishes its comments on the filing. Given the decision to list through a SPAC, Fox-Geen says the company can keep the process transparent. Other crypto companies like Kraken, which is going public through an initial public offering, cannot do this.

On the date of publication, Brenden Rearick 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.

Brenden Rearick is a Financial News Writer for InvestorPlace’s Today’s Market team. He mainly covers digital assets and tech stocks, with a focus on crypto regulation and DeFi.


Article printed from InvestorPlace Media, https://investorplace.com/2022/07/usdc-stablecoin-provider-circle-discloses-reserves-plans-q4-public-listing/.

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