Circle set to go public in a $4.5 billion SPAC merger deal
Circle, a blockchain company behind USD Coin, is set to go public by merging with a SPAC. The transaction will value the company at more than $4.5 billion.
Circle set to go public
Circle is a blockchain payments company that helps online businesses accept payments and send payouts globally. The firm was started in 2013 as Bitcoin was getting popular.
Over the years, Circle has expanded its products and services. It has a Circle account, a comprehensive suite that aims to replace the traditional business banking. It allows companies to securely custody funds and send and receive payments. This account is connected to the USD Coin, a stablecoin that is backed by the US dollar. The coin has a market capitalization of more than $25 billion, according to CoinMarketCap.
Circle also has a product known as SeedInvest that allows companies to raise money from global investors. Its newest product is known as Circle Yield. It will be a fixed-term fully secured yield offering.
In a statement on Thursday, Circle announced that it will go public by merging with Concord Acquisition Corp. Concord is a SPAC or a blank-check company that was formed to merge with a private company. As part of the merger, Concord will provide $415 million in PIPE funding. This will be on top of the $440 million that the company raised recently.
Fintech going public
Circle joins a long list of fintech companies that are going public. Wise, formerly known as Transferwise, went public in London. The debut valued the company at more than $11 billion. Payoneer also went public by merging with Betsy Cohen’s SPAC that valued the firm at more than $3 billion.
The next big initial public offering could come from Remitly, a company that has a similar business model to Wise. It is expected to go public later this year. Similarly, WorldRemit is expected to go public by merging with a SPAC. Ripple Labs, the company behind XRP is also set to go public.