Circle Files for IPO, Boosted by USDC's $38B Binance Holdings
Circle, the company behind the $60 billion USDC stablecoin, has filed for an IPO. In 2024, it spent over $1 billion on distribution, with a significant portion going to Coinbase. Meanwhile, Binance holds nearly $38 billion in stablecoins, including $5.5 billion in USDC.
Circle's 2024 revenue reached nearly $1.7 billion, but its operating income was relatively modest at $167 million. This was partly due to a deal with Coinbase that limits revenue distribution to partners until 2029. Circle's net income could have been significantly higher without this burden.
In 2024, Circle entered a strategic partnership with Binance, leading to a $74.1 million increase in 'other distribution incentive costs'. This came after Circle assumed full control of USDC in 2023, dissolving the Centre Consortium formed with Coinbase.
Circle's growth has been marked by strategic acquisitions and deals. It acquired Hashnote, a tokenized treasury firm, and struck a deal with ICE, the parent company of the NYSE. USDC is now well positioned to lead the adoption of tokenized assets and money market funds in traditional finance.
Circle's IPO filing signals a significant step in the company's growth. Despite the Coinbase agreement's impact on its income, Circle's strategic partnerships and acquisitions have strengthened its position in the stablecoin market. With Binance's substantial holdings in USDC, the future of stablecoin adoption looks promising.
