According to a report by Bloomberg News on May 28, BlackRock is set to acquire around 10% of the shares offered in Circle’s upcoming initial public offering (IPO).
The company, along with its CEO Jeremy Allaire and other shareholders, aims to raise $624 million through the IPO, with orders already surpassing the available shares. The pricing is scheduled for June 4.
BlackRock currently manages the Circle Reserve Fund, which holds the majority of reserves backing Circle’s USDC stablecoin. The fund reported nearly $30 billion in net assets as of April 30, 2024.
While BlackRock’s final participation is subject to change, its potential stake in Circle through the IPO would strengthen the existing relationship between the two entities.
Institutional Interest in Circle Grows
The IPO filing also highlights significant interest from major institutional investors, indicating a growing demand for equity in the stablecoin issuer as it prepares to go public.
Circle’s USDC stablecoin ranks second in the market with a $61.3 billion market cap and has seen a $10 trillion transfer volume year-to-date as of April 30.
Legislation in Congress proposes backing stablecoins with cash or government securities, a structure already in place for USDC through the Circle Reserve Fund.
With the IPO, Circle is aligning itself with the trend of crypto companies seeking public market capitalization amidst evolving regulatory policies. Kraken is also reportedly considering an IPO in 2026.
The IPO filing signifies Circle’s transition towards a more transparent and regulated capital structure, supported by institutional investors and BlackRock’s management of the Circle Reserve Fund.
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