Stablecoin’s issuer, Circle, plans to move its legal base from the Republic of Ireland to the United States.
On Wednesday, Bloomberg reported that the company recently filed court documents to change its place of registration. This comes after Circle submitted plans for an initial public offering to US securities regulators in January.
“The initial public offering is expected to take place after the SEC completes its review process, subject to market and other conditions,” Circle announced at the time.
Circle heads to U.S. shores, leaving Irish tax benefits behind
According to Bloomberg, choosing the United States as its new home could mean Circle will face a higher tax burden. Companies would generally do the opposite, coming to Ireland because of its business-friendly environment and low tax rate.
The country’s 12.5% interest rate pales in comparison to many other European countries. This makes Ireland a magnet for international companies looking to cut taxes.
IPO awaits SEC nomination and market conditions
Launched in 2013, Circle has created a niche in the cryptocurrency industry. It is best known for issuing USDC, a stablecoin pegged to the US dollar. As of May 2024, USDC boasts a market capitalization of more than $32 billion, solidifying its position as a major player.
Circle’s core business focuses on issuing and managing USDC. It is widely believed that stablecoins provide stability to transactions in the often turbulent cryptocurrency market.
Moreover, Circle’s plan to go public through a traditional IPO follows a failed attempt in 2021 through a special purpose acquisition company (SPAC) merger . The initial public offering will take place after SEC approval, but will depend on market conditions and other factors.
In January, Circle unveiled plans to launch USDC on the Celo network. Celo is a Layer 1 blockchain evolving into an Ethereum Layer 2 scaling network . This collaboration aims to leverage Celo’s mobile-focused user community in areas with the highest blockchain adoption rates.
