Stablecoin issuer Circle plans legal base shift to US ahead of IPO

USDC stablecoin issuer Circle plans to move its legal base from Ireland to the US as its IPO approaches.

Stablecoin issuer Circle is trying to shift its legal base from Ireland to the US as the company prepares for an upcoming initial public offering (IPO).

According to a Bloomberg report on May 15, the company had recently filed court papers to “re-domicile,” according to a spokesperson for Circle, but declined to elaborate on the matter. In January, the stablecoin issuer secretly filed plans with the U.S. Securities and Exchange Commission (SEC) for an initial public offering after a long period of fewer transactions due to unstable markets.

Traditionally, IPOs serve as a capital infusion mechanism that allows companies to develop their infrastructure and expand their marketing efforts. For Circle, going public would mean an infusion of resources that could be devoted to promoting USDC and increasing its competitiveness against USDT, another stablecoin issued by Tether.

However, details of Circle’s IPO have not yet been disclosed, including the number of shares to be offered and the price range offered. The Boston-based company, which initially targeted an initial public offering in July 2021, later announced plans to launch an initial public offering in 2022 as Concord Acquisition Corp. Pursued a new agreement worth $9 billion with However, the highly anticipated SPAC deal could not materialize due to the US Securities and Exchange Commission (SEC) refusing to approve the application.

Ireland was chosen as a base by Circle due to its favorable tax environment; much like other tech giants such as Coinbase, Apple, Google and Facebook have established EU headquarters in the region.