Nikolas Sargeant
Circle's decision to transition to the US may entail a higher tax burden, diverging from the typical trend of companies seeking Ireland's business-friendly environment and low tax rates. Ireland's 12.5% tax rate has historically attracted international firms aiming to optimize their tax obligations.
Awaiting SEC Approval and Market Conditions for IPO
Established in 2013, Circle has gained prominence in the crypto industry, primarily for issuing USDC, a stablecoin pegged to the US dollar. With USDC's market cap surpassing $32 billion as of May 2024, Circle has solidified its position as a significant player in the market.
Circle's primary focus lies in issuing and managing USDC, providing stability for transactions within the volatile cryptocurrency market. The company's decision to pursue a traditional IPO follows a failed attempt in 2021 through a special purpose acquisition company (SPAC) merger. The IPO, contingent upon SEC approval and market conditions, remains subject to various factors.
In January, Circle announced plans to introduce USDC on the Celo network, leveraging Celo's evolving infrastructure as an Ethereum Layer-2 scaling network. This strategic collaboration aims to capitalize on Celo's mobile-centric user base in regions with high blockchain adoption rates.
