The issuer of the USDC stablecoin Circle is set to go public via a SPAC deal with Concord Acquisition Corp, with Circle expected to be valued at around $4.5 billion.
Circle, the company behind the USDC stablecoin, has announced that it will become a publicly listed entity. The payment company is going public via a SPAC (Special Purpose Acquisition Company) deal, a method used by several fintech companies in recent years.
In its press release, Circle said, “Circle, a global financial technology firm that provides payments and treasury infrastructure for internet businesses, announced today that it has entered into a definitive business combination agreement with Concord Acquisition Corp, a SPAC company.”
Per the terms of the agreement, a new Irish company will acquire both Circle and Concord and become a publicly traded company. The company will trade on the New York Stock Exchange under the ticker “CRCL.” The deal is expected to give Circle a valuation of around $4.5 billion.
SPAC deals have become popular, especially amongst fintech companies, with Payoneer recently using this method to go public. SPACs are shell companies designed to help private firms go public without experiencing the complex IPO processes.
Circle is going into the SPAC deal after receiving over $400 million in additional funding via PIPE financing. This is a type of fundraising where public shares are sold to private investors below the market price.
Some of the leading investors in this latest fundraising round include Marshall Wace LLP, Adage Capital Management, Fidelity Management & Research Company, accounts advised by ARK Investment Management and Third Point.
Circle said its USDC stablecoin has experienced massive growth over the past year and intends to become the leader in the space. USDC is currently the second-largest stablecoin in the crypto space, behind Tether (USDT) and has a market cap close to $26 billion