Cryptocurrency firm Circle to go public in SPAC deal – TechCrunch
Circle has announced its intention to become a public company. The cryptocurrency company will merge with Concord Acquisition Corp, a SPAC. Circle is best known as one of the founding members of the Center consortium along with Coinbase. Along with other crypto partners, they issued USD Coin (USDC), a popular stablecoin.
A PSPC is a publicly traded blank check company. Merging with a PSPC has become a popular way to become a publicly traded company for technology companies.
Circle says the deal is expected to value the company at $ 4.5 billion. The investors involved in the merger have committed $ 415 million to finance PIPE. The company also recently raised $ 440 million in capital. In other words, Circle will have a lot of capital if the merger goes through.
Founded in 2013, the company originally wanted to create a consumer bitcoin payment platform. But the company then pivoted to create a social payments app. Circle has become something of a Venmo clone with blockchain technology under the hood. At one point, Circle even removed the ability to send and receive bitcoin.
âWe never saw ourselves as a bitcoin startup. The media certainly categorized us that way because we were involved in technology. From the day we founded the company three years ago, we have focused on building a new consumer finance company. And whoever makes money work the way the internet works, âCircle co-founder and CEO Jeremy Allaire told TechCrunch’s Natasha Lomas in 2016.
While this consumer game hasn’t taken off, it’s interesting that Allaire was already thinking about being able to transfer money programmatically. In 2017 and 2018, the company again pivoted to focus on cryptocurrencies. He launched an OTC trading desk for large cryptocurrency investors.
It acquired Poloniex, one of the largest cryptocurrency exchanges in the United States at the time. He also launched Circle Invest, a very simple mobile app that allows you to buy and sell a handful of crypto assets.
But Circle’s most promising product has been its stablecoin – USD Coin, or USDC for short. As the name suggests, 1 USDC is always worth 1 USD. Unlike traditional cryptocurrencies, you can be sure that the value of USDC is not going to fluctuate like crazy. Auditing firms regularly verify that issuers still keep as much USD in bank accounts as USDDC in circulation.
With USDC, transferring money from one wallet to another becomes as easy as using standard API calls. The company then added various infrastructure products around USDC, such as Circle Accounts. Circle has also built ramps to bridge the gap between fiat currencies and cryptocurrencies.
There is currently USDC 25 billion in circulation and the company believes there will be USDC 190 billion in circulation by the end of 2023. And Circle plans to leverage the popularity of USDC to build financial services. that leverage the USDC.