World Crypto Global
- Written by: Jared Kirui
- Wed, 15 May 2024
- Israel
Stablecoin issuer Circle plans to move its legal base fromIreland to the US, according to recent court filings, Bloomberg reported. Thisaction is significant for the company behind the second-largest stablecoin,USDC, ahead of its anticipated initial public offering. The decision to shift its legal base has significant implications for Circle, particularly in terms of taxes. While Ireland has been attractive to multinational corporations due to its relatively low corporate taxes, recent reforms imposing a minimum 15% tax on the profits of largermultinationals have eroded some of that advantage. Business Dynamics By moving to the US, Circle may face heavier taxobligations, signaling a strategic decision amidst evolving global taxregulations. Circle is behind USDC, a stablecoin with a market capitalizationof more than $30 billion. Despite facing challenges in the past, includingbanking issues with Silicon Valley Bank, USDC has experienced a recovery amid positive sentiment in the crypto market. Circle's latest decision is closely monitored bytraditional finance players and the crypto community. The company is backed byWall Street giants, including Goldman Sachs Group Inc., BlackRock, and FidelityManagement and Research, as well as major crypto exchanges like Coinbase.Last year, Bloomberg reported that Circle wascontemplating going public despite a previous failed attempt to list via areverse merger. The Boston-based company is reportedly preparing for a secondattempt at an initial public offering this year.In Talks with Advisers While Circle has not officially confirmed these talks,sources familiar with the matter suggest that the company is engaged indiscussions with advisers to prepare for the potential IPO. However, uncertaintylooms over whether Circle will ultimately proceed with the public listing,highlighting the cautious approach in the volatile cryptocurrency market.Established in 2013, Circle has emerged as a keyplayer in the cryptocurrency ecosystem, particularly with its USDC stablecoin. Previously, Circle attempted to go public in partnership with ConcordAcquisition Corp. in a transaction valuing the stablecoin issuer at $9 billion. Despite its ambitions, Circle faced challenges after the collapse of its banking partner, Silicon Valley Bank. This eventthreatened to de-peg USDC but was mitigated by a US government bailout package.This article was written by Jared Kirui at www.financemagnates.com.
