: the home of the USD Coin stablecoin transfers its legal base to the United States and plans an IPO

Circle Internet Financial, the issuer of the world’s second largest stablecoin USD Coin (USDC), is transferring its legal base from Ireland to the United States.

This move has been confirmed by the recent presentation of court documents, although the company’s spokesperson has refused to reveal the specific reasons behind this decision.

Tax implications

The transfer of the legal base from Ireland to the United States could obviously result in an increase in the tax burden for Circle.

It is well known that many companies choose to establish themselves legally in Ireland to take advantage of its low tax rate, which is set at only 12.5%. 

However, Circle seems ready to face this change, perhaps indicating a greater commitment to the US market.

Circle: IPO on the horizon for the issuer of the USD Coin stablecoin

At the same time, Circle discreetly filed a request for an initial public offering (IPO) with the Securities and Exchange Commission (SEC) of the United States. 

As we all know, the approval process in these cases is long and arduous, as a series of approvals from the SEC are required. 

Circle has indeed reiterated that the IPO will take place after the SEC has completed its review process.

Circle had previously planned to go public through a $9 billion SPAC deal, but the agreement was canceled in December 2022. 

However, CEO Jeremy Allaire has confirmed the company’s intention to proceed with an IPO. 

Circle: A pioneer in the stablecoin sector, USD Coin second only to USDT

Founded in 2013, Circle has quickly established its position in the cryptocurrency sector. Its stablecoin, USDC, has a market capitalization of 25 billion dollars, second only to Tether (USDT) with 94 billion dollars. 

The USDC reserves are held with Coinbase, a publicly traded cryptocurrency exchange that also has a stake in Circle. It is also worth noting that Coinbase’s (COIN) shares have increased by 9.61% in the last month.

New frontiers

In January, Circle also revealed its plans to introduce USDC on the Celo network, a Layer-1 blockchain that is evolving into a Layer-2 scalability network of Ethereum. 

This collaboration aims to leverage Celo’s mobile-centric user community, especially in areas with high blockchain adoption rates.

The impact of ETFs on Bitcoin spot

Let’s close by remembering that recently Bitcoin has returned to touch prices seen for the last time almost two years ago, reaching $47,600.

Last Thursday, the first 11 spot Bitcoin ETFs in the United States began trading, with high-profile fund managers such as BlackRock, Fidelity, and Franklin Templeton. 

Despite the approval of ETFs, however, SEC Chairman Gary Gensler clarified that this does not signal a willingness of the Commission to approve listing standards for cryptographic asset securities.