EddieJayonCrypto
29 May 25
BlackRock plans to acquire about a 10% stake in Circle’s upcoming IPO, aiming to raise $624 million. The IPO, priced June 4, has received orders exceeding available shares. BlackRock already manages the Circle Reserve Fund, holding nearly 90% of USDC stablecoin reserves, with $30 billion in net asse...
BlackRock plans to acquire approximately a 10% stake in Circle’s upcoming IPO, aiming to raise $624 million. This move deepens BlackRock's existing relationship with Circle, as it already manages the Circle Reserve Fund — the government money market fund backing nearly 90% of the USDC stablecoin reserves, with $30 billion in net assets.
The IPO, priced for June 4, has attracted orders surpassing the available shares, indicating strong institutional interest. Circle’s USDC stablecoin remains the second-largest USD-pegged stablecoin, boasting a $61.3 billion market cap and a remarkable $10 trillion transfer volume year-to-date. This robust demand aligns with evolving stablecoin regulations that favor cash or government securities-backed tokens, matching USDC’s reserve structure.
Circle’s decision to pursue a US-based IPO follows a previously terminated SPAC deal in 2022 and reflects a strategic push toward regulatory compliance and public market capitalization. By partnering with BlackRock, the world's largest asset manager, Circle aims to expand its operations under a transparent and regulated capital framework. Institutional investor enthusiasm underscores the growing confidence in stablecoin issuers as the regulatory landscape becomes clearer and more supportive.