Stablecoin Issuer Circle to Shift Legal Base from Ireland to US: Report

Stablecoin issuer Circle plans to move its legal base from Ireland to the US, according to recent court filings, Bloomberg reported. This action 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 larger multinationals have eroded some of that advantage.

Business Dynamics

By moving to the US, Circle may face heavier tax obligations, signaling a strategic decision amidst evolving global tax regulations. Circle is behind USDC, a stablecoin with a market capitalization of more than $30 billion. Despite facing challenges in the past, including banking issues with Silicon Valley Bank, USDC has experienced a recovery amid positive sentiment in the crypto market.

Circle's latest decision is closely monitored by traditional finance players and the crypto community. The company is backed by Wall Street giants, including Goldman Sachs Group Inc., BlackRock, and Fidelity Management and Research, as well as major crypto exchanges like Coinbase.

Last year, Bloomberg reported that Circle was contemplating going public despite a previous failed attempt to list via a reverse merger. The Boston-based company is reportedly preparing for a second attempt 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 in discussions with advisers to prepare for the potential IPO. However, uncertainty looms 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 key player in the cryptocurrency ecosystem, particularly with its USDC stablecoin. Previously, Circle attempted to go public in partnership with Concord Acquisition 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 event threatened to de-peg USDC but was mitigated by a US government bailout package.