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Circle to transfer the legal basis from Ireland to the United States
As it prepares to go public, stablecoin issuer Circle he is also reportedly planning a move.
The company is preparing to transfer its employees legal basis from Ireland to the United States, Bloomberg reported on Wednesday (May 15). A spokesperson for the company confirmed to the news outlet that Circle had submitted paperwork for the move but declined to say why.
Circle earlier this year confidentially filed documents for a initial public offering (IPO) with the Securities and Exchange Commission (SEC). The company, which issues the stablecoin USDC, had initially planned to go public in 2022 through a merger with a $9 billion special purpose acquisition company (SPAC).
However, that Deal was suspended while the company waited for the SEC to approve its S-4 registration document. Circle later said it recognized the need for a thorough review.
“We never expected the SEC registration the process will be quick and easy,” the company said in January 2023. “We are a new company in a new industry.”
Stablecoins are a variety of cryptocurrencies built to maintain a stable value by tying their value to a fiat currency, such as the US dollar. Unlike traditional cryptocurrencies like bitcoin, which are known for price fluctuations, stablecoins provide a level of stability that mirrors that of traditional currencies.
Last month, Visa AND Allium LaboratoriesThe new stablecoin transaction metric found that the USDC coin has started to outperform Bind in terms of stablecoin transaction volume. These results went against expectations, as Tether is generally considered the leading stablecoin in the industry.
According to Visa, USDC saw $456 billion in transaction volume in one week, compared to $89 billion for Tether’s USDT stablecoin. USDC also accounted for half of total transactions year-to-date, the report said.
However, the same Visa/Allium metric later determined that the majority of stablecoin transactions were driven by botof which less than 10% involves “organic payments activity”.
The findings show “that stablecoins are still in a nascent stage of their evolution as a payment instrument,” Pranav SoodExecutive General Manager for Europe, Middle East and Africa of the Payments Platform Airwallexhe said at the time.
“That’s not to say they don’t have long-term potential, because I think they do,” Sood added. “But the short- and medium-term focus must be on ensuring that existing railways perform much better.”
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