Circle Files IPO on NYSE at $6.7 Billion Valuation (Decrypt)
USDC stablecoin issuer Circle filed paperwork with the U.S. Securities and Exchange Commission (SEC) to offer 24 million shares for $24 to $26 each. The firm is targeting a $6.7 billion fully diluted valuation. Circle is expected to trade on the New York Stock Exchange under the ticker CRCL. USDC was launched by Circle and Coinbase in 2018 via the Centre Consortium. Coinbase, which went public in 2021, took an equity stake in Circle in August 2023 amid the dissolution of the consortium. In April, Bloomberg reported that Ripple made a $4-5 billion offer for Circle, but was rebuffed due to the offer being too low. [Read more at Businesswire]
Competing Digital Monies (TSE)
In a University of Toulouse School of Economics (TSE) working paper, Jon Frost (BIS), Jean-Charles Rochet, Huyn Song Shin (BIS), and Marianne Verdier analyzed the competition between three digital payment instruments: bank deposits, private stablecoins, and central bank digital currencies (CBDCs). Using a theoretical model grounded in two-sided market economics, the authors explore how market structure and social welfare are affected by “walled gardens” (non-interoperable payment ecosystems) versus interoperable systems such as central bank-operated fast payment systems (FPS) or CBDCs. They find that both CBDCs and FPS can increase financial inclusion, raise trade volumes, and enhance welfare—though they may reduce the market share of traditional financial intermediaries and paradoxically lead to higher merchant fees due to decreased price elasticity. The paper concludes that, in many cases, a well-designed FPS may offer similar benefits to a retail CBDC, suggesting that countries with robust FPS infrastructure may not urgently need a CBDC. [Read more at the TSE]
Upcoming Speaking Engagements:
The CB+DC Conference (Nassau, Bahamas, September 9-11) is a premier gathering centered on CBDCs, tokenized assets, and stablecoins. It provides a forum for central bankers, commercial bankers, technology innovators, policymakers, and academics to explore the latest advancements in digital currency, engage with experts and peers, and discuss the future of digital currency. [Register here but before you do, email me at john@kiffmeister.com for a 15% discount]
And just a reminder that I produce a monthly digest of central bank digital currency (CBDC) developments exclusively for the official sector. So (only) if you work at a central bank, ministry of finance or international financial institution (e.g., the BIS, IMF, OECD, World Bank) and who would like to receive it by email on the first business day of every month, please DM me on LinkedIn or email me at john@kiffmeister.com.
