Circle delays IPO
Circle, the company behind the USDC stablecoin, may delay its planned initial public offering (IPO) due to growing economic uncertainty linked to new U.S. trade policies. According to The Wall Street Journal, sources familiar with the matter say the company is now hesitating to move forward despite having filed registration papers with the SEC on April 1.
Circle is one of several firms, including Klarna and StubHub, that are reconsidering IPO plans as markets react to President Trump’s sweeping new tariffs. Announced on April 2, the tariffs include a 10% base duty on goods from all countries, with additional retaliatory measures targeting nations that tax U.S. imports. This policy shift has sparked fears of a global trade war.
Over $2 trillion in U.S. market value was lost in a single day, as investors pulled out of riskier assets. The S&P 500 Volatility Index (VIX) soared past 41, signaling widespread fear in financial markets.
Concern about a potential U.S. recession is mounting, especially after other nations responded with counter-tariffs. ARK Invest's Cathie Wood had already warned of slowing economic momentum weeks earlier, saying, “The velocity of money is slowing dramatically.”
Circle plans to list under the ticker "CRCL" but has not yet disclosed details on share quantity or pricing. The company posted $1.67 billion in revenue for 2024, marking a 16% year-over-year increase.
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