Stablecoin issuer Circle Internet Group raised nearly $1.1 billion in its IPO, above its expected range, as investors grow increasingly attracted to cryptocurrencies.
Shares of Circle Internet Group more than tripled from its opening price of $31, raising $1.1 billion. The resulting increase in market capitalization is expected to fund expansion of its USDC stablecoin, which can be redeemed 1‑for‑1 with the US dollar.
Other recent IPOs in the crypto space signal growing momentum in the market. Crypto-focused firms such as Galaxy Digital alongside eToro, which operates a crypto-trading platform, have also gone public.
In June, the US Senate passed the GENIUS Act, a landmark federal bill that establishes a regulatory framework for dollar-backed stablecoins.
According to S&P Global Market Intelligence, crypto‑currency IPO volume peaked in 2021 with 11 offerings valued at $596 million. So far this year, five crypto IPOs have raised just over $2.1 billion.
“There’s a growing appetite among investors. IPOs provide a more regulated and traditional avenue for investment compared to direct crypto investments,” says Francois Chadwick, KPMG’s Private Enterprise Global and National Lead Partner of the Emerging Giants practice.
There have also been major crypto IPOs from non‑US firms. Singapore’s crypto solutions provider Antalpha Platform Holding launched a US‑based offering in April.
“The interest in crypto IPOs is not limited to the US, across the globe similar developments are taking place,” Chadwick says. “Countries like Switzerland and the United Kingdom are home to crypto-friendly regulations and have seen companies pursuing public listings. Japan and South Korea, both of which have robust crypto markets and supportive regulatory environments, see interest in blockchain and crypto IPOs.”
Chadwick noted that while it may seem counterintuitive for crypto companies to raise fiat capital via IPOs, there are several compelling reasons: “IPOs provide significant capital that crypto companies can use to expand operations, develop new technologies, and enter new markets.”
Going public also involves extensive regulatory scrutiny, allowing crypto companies to demonstrate their adherence to financial regulations, which can be reassuring to investors.
