USDC's Circle Just Filed to IPO. Would It Make a Good Investment? - Ep. 812
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Yeah. I mean, I think five's high. I have looked it in the past. I I am probably a buyer somewhere between two and three, but I I don't know if the the market gets there. I I think there is part of this story, which is there is not pure play stablecoin exposure in the public markets today. And if you want that, there's ways to get it. Like, you can obviously become an investor in Coinbase and you get this nice little revenue share that flows in from Circle. You can invest in PayPal, which obviously has their stablecoin today. There's a number of different equities that you can invest into if y
Hi, everyone. Welcome to Unchained, your an OHIP resource for all things crypto. I'm your host, Laura Shin. We are now featuring quotes from listeners on the show. Today, we have a few responding to my interview with Infinix founder, Kaye Warwick. On x, Garth Trader says, quote, I always enjoy the conversations on your show. We need intelligent dialogue to move past the narrative of this being a space full of scams. And also on x, Manu writes, quote, Infinix is looking like a real change maker in the space, and they made it all look so simple. Makes you wonder what took so long. To have your c
Laura. How are you? Good.
So we're here to discuss Circle's s one, which it filed, to list its IPO on the New York Stock Exchange under the ticker CRCL. And this was actually the second time that Circles attempted to go public. The first time was as a SPAC merger in 2021, which ultimately didn't go through. Crypto Twitter really enjoyed dis dissecting this s one. When you looked it over, what stood out to you?
Yeah. There's a number of things, I guess, that stood out when I when I looked at it. First, it's we've always gotten this anecdotal reporting from Tether, and it's a subset of their underlying financials, and they they highlight a number of things which highlight the strength of their business. And Circles was a broader look and to add a much more refined level into that company and seeing everything that's happened since they last tried to go public with the SPAC and how things have developed over the years and what that's meant in terms of getting distribution and getting their stable point
the biggest point that I saw people discussing was the distribution fees that Circle pays. For instance, in 2024, Coinbase received more than half of Circle's revenue, $900,000,000 or or slightly above. And that was a, you know, pretty much little cost to Coinbase. And similarly, in November, Circle and Binance struck a two year deal in which Circle paid Binance a one time fee of $60,250,000 and a monthly incentive fee that ranges from a double digit percentage of USDC and Binance to high double digit percentages. And that's an exchange for Binance holding a certain amount of USDC in its treas
Yeah. I I think it's almost a necessary step for the business to continue to scale in any way, shape, or form. If you just look in the state of the world, there's so many different stable coin issuers now that are competing for a piece of the pie. And when you look at where the users sit, they tend to sit on these different c five
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