Circle chief executive officer, Jeremy Allaire has confirmed that the stablecoin issuing company stays committed to launching an initial public offering (IPO). Interestingly, these comments have come amidst a controversial report on Circle’s biggest competitor Tether.

Circle Financial Standing Strong, No Need For Extra Funds, Circle Boss Says

In an interview with Bloomberg on Friday, Jeremy Allaire stated that Circle’s plans to go public are still in place and underway. Notably in January, the stablecoin operator behind the USD Coin (USDC) filed a confidential draft registration for an IPO with the US Securities and Exchange Commission (SEC). 

This application occurred following Circle’s failed try to merge with Concord Acquisition Corp., a blank check company in 2022, a technique that might have hastened the technique of going public with fewer regulatory hurdles than a standard IPO. 

In preparation for its potential IPO, Bloomberg notes that Circle has been expanding its workforce, especially in anticipation of the US Government installing a stablecoin regulatory framework. Particularly, Allaire expressed a robust belief that US lawmakers may pass some stablecoins bills following the final elections in November before newly elected officials are sworn in in January. 

Moreover, The Circle CEO has assured the general public of the corporate’s sufficient financial resources stating there might be no need to boost funds from private markets equivalent to enterprise capital or private equity ahead of the IPO. 

Allaire said: 

We’re in a financially strong position and have been capable of construct a really solid business, and we’re currently not in search of any funding

As earlier stated, Circle operates because the issuing company of USDC, a preferred stablecoin with a market cap of $34.69 billion. With these market shares, USDC ranks because the second-largest stablecoin behind the Tether USDT, which boasts a market cap of $120 billion.

Tether In Trouble?

Amidst reports of Circle’s optimism on an IPO, media company Wall Street Journal reported that Tether is currently under investigation by US authorities over anti-money laundering violations. WSJ stated that the Manhattan US Attorney’s Office is currently evaluating the potential use of USDT by bad actors in drug trafficking, terrorism, and other illegal activities. 

Nevertheless, Tether has kicked against this report which it claims accommodates “reckless allegations” with no confirmation from authorities. Particularly, Tether’s CEO Paolo Ardoino has stated there isn’t any indication the stablecoin operator is under any investigation while also expressing their commitment to stopping illicit use of the USDT token. 

Following WSJ’s earlier report, the final crypto market showed a negative response, with Bitcoin declining by over 3% to trade around $66,000, thus illustrating the importance of USDT within the digital asset space.

When it comes to an IPO, Ardoinio has stated that Tether has no real interest in taking that route as he believes an invite to public investors may slow the corporate’s development and “disrupt the established order”. As well as, the Tether CEO has stated no need to boost capital for the foreseeable future as the corporate currently boasts of over 1 billion money on its asset balance sheet.

Featured image from Deniz Tutku, chart from Tradingview