Circle chief executive officer, Jeremy Allaire has confirmed that the stablecoin issuing company remains committed to launching an initial public offering (IPO). Interestingly, these comments have come amidst a controversial report on Circle’s biggest competitor Tether.

In an interview with Bloomberg on Friday, Jeremy Allaire stated that Circle’s plans to go public are still in place and underway. Notably in January, the stablecoin operator behind the USD Coin (USDC) filed a confidential draft registration for an IPO with the US Securities and Exchange Commission (SEC). 

This application occurred following Circle’s failed attempt to merge with Concord Acquisition Corp., a blank check company in 2022, a strategy that would have hastened the process of going public with fewer regulatory hurdles than a traditional IPO. 

In preparation for its potential IPO, Bloomberg notes that Circle has been expanding its workforce, especially in anticipation of the US Government installing a stablecoin regulatory framework. In particular, Allaire expressed a strong belief that US lawmakers may pass some stablecoins bills following the general elections in November before newly elected officials are sworn in in January. 

Furthermore, The Circle CEO has assured the public of the company’s sufficient financial resources stating there will be no need to raise funds from private markets such as venture capital or private equity ahead of the IPO. 

Allaire said: 

We’re in a financially strong position and have been able to build a very solid business, and we’re currently not seeking any funding

As earlier stated, Circle operates as the issuing company of USDC, a popular stablecoin with a market cap of $34.69 billion. With these market shares, USDC ranks as the second-largest stablecoin behind the Tether USDT, which boasts a market cap of $120 billion.

Amidst reports of Circle’s optimism on an IPO, media company Wall Street Journal reported that Tether is currently under investigation by US authorities over anti-money laundering violations. WSJ stated that the Manhattan US Attorney’s Office is currently evaluating the potential use of USDT by bad actors in drug trafficking, terrorism, and other illegal activities. 

However, Tether has kicked against this report which it claims contains “reckless allegations” with no confirmation from authorities. In particular, Tether’s CEO Paolo Ardoino has stated there is no indication the stablecoin operator is under any investigation while also expressing their commitment to preventing illicit use of the USDT token. 

Following WSJ’s earlier report, the general crypto market showed a negative reaction, with Bitcoin declining by over 3% to trade around $66,000, thus illustrating the importance of USDT in the digital asset space.

In terms of an IPO, Ardoinio has stated that Tether has no interest in taking that route as he believes an invitation to public investors may slow the company’s development and “disrupt the status quo”. In addition, the Tether CEO has stated no need to raise capital for the foreseeable future as the company currently boasts of over 1 billion cash on its asset balance sheet.

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