[NEWS] Circle, which issues stablecoin USDC, moves legal base to the U.S. in anticipation of IPO

It has been revealed that Circle, which issues and operates the stablecoin USD Coin (USDC), which is backed by the US dollar, will move its legal base from Ireland to the United States in anticipation of an IPO. Bloomberg reported on the 15th.

A Circle spokesperson confirmed to Bloomberg that the company had filed court documents to move its Irish holding company to the United States. However, he did not disclose the reason for the move. It seems likely that Circle's move is aimed at complying with US financial regulations as the company prepares for an IPO.

In 2021, Circle announced plans to go public through a merger with a special purpose acquisition company (SPAC). In February 2022, the company was valued at $9 billion (approximately 1.38 trillion yen). According to CoinGecko, USD Coin's market capitalization has reached $33 billion (approximately 5 trillion yen), making it the second largest stablecoin after Tether (USDT).

Meanwhile, Circle's plans for an IPO in 2022 were thwarted due to delays in preparation. However, in January of this year, Circle announced that it had confidentially submitted a draft Form S-1 for an IPO to the SEC (US Securities and Exchange Commission).

Ireland's tax reform may also have been an influence

Circle's decision to move its legal base to the US comes amid an insufficient regulatory environment for crypto assets and stablecoins in the US. There are currently growing calls in the US for regulations to be put in place quickly.

In the future, Circle will need to comply with SEC and other regulations by being based in the US, but this move of its headquarters will be an important step in preparing for an IPO.

The decision may also have been influenced by the tax reform set by the OECD (Organization for Economic Cooperation and Development), which imposes a minimum tax of 15% on multinational corporations. With the economic benefits of Ireland's low corporate tax rate reduced and the amount of tax increased, Circle's need to base itself in the country weakened. Therefore, it is possible that the decision to move early was made in light of the IPO.

Reference: Press
Image: Shutterstock

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