Circle Delays IPO Amid Economic Uncertainty and Trade Policy Changes
Circle, the issuer of the USDC stablecoin, may postpone its initial public offering (IPO) due to economic uncertainty from new U.S. trade policies. The company filed registration papers with the SEC on April 1 but is now reconsidering.
Key points include:
- Several companies, including Klarna and StubHub, are also reevaluating their IPO plans amid market reactions to President Trump’s new tariffs.
- The tariffs, announced on April 2, impose a 10% duty on goods from all countries, raising fears of a global trade war.
- Over $2 trillion in U.S. market value was lost in one day, with the S&P 500 Volatility Index (VIX) surpassing 41.
- Concerns about a U.S. recession are increasing, exacerbated by retaliatory counter-tariffs from other nations.
- Circle intends to list under the ticker "CRCL" but has not revealed share quantity or pricing details.
- The company reported $1.67 billion in revenue for 2024, a 16% increase year-over-year.