Fintech company Circle to go public in business combination
Fintech company Circle is to go public in a merger with special purpose acquisition company Concord Acquisition Corporation, in a deal that values Circle at $4.5 billion.
The transaction is anticipated to close in the final three months of this year.
Two years ago Circle, through Circle International Bermuda Limited, was the first company to achieve a full licence under Bermuda’s Digital Asset Business Act.
Boston-based Circle is the principal operator of the USDC stablecoin, one of the top ten largest cryptocurrencies by market capitalisation, and said to be the world’s fastest growing dollar digital currency.
In a statement announcing the definitive agreement between Circle and Concord Acquisition Corp, Bob Diamond, chairman of Concord and chief executive officer of Atlas Merchant Capital, said: “Circle is the true pioneer of trusted digital currencies, an increasingly critical part of the global financial system.
“The firm has earned its exceptionally strong reputation building highly innovative blockchain-enabled products and services within the regulatory perimeter. Circle’s world-class leadership team, its track record of delivery, and extraordinary ambition help position the firm as one of the most exciting companies in the transformation of finance.”
Jeremy Allaire, Circle’s co-founder and CEO, said: “Circle was founded with a mission to transform the global economic system through the power of digital currencies and the open internet.
“We’ve made huge strides towards realising this vision, and through this strategic transaction and ultimate public debut, we are taking an even bigger step forward, with the capital and relationships needed to build a global-scale internet financial services company that can help businesses everywhere to connect into a more open, inclusive and effective global economic system.”
Mr Allaire, who will remain CEO of the company, added: “We are thrilled to partner with Concord’s executive and investment team, drawing on their decades of operating experience growing financial services businesses around the world.”
Announcing the business combination, Circle said that under the terms of the agreement, a new Irish holding company will acquire both Concord and Circle and become a publicly-traded company, which is expected to trade on the New York Stock Exchange.
Circle said its mission of raising global economic prosperity through the frictionless exchange of financial value is being met through “a series of internet-native, digital currency powered, transaction and treasury services that help businesses and financial institutions globally to take advantage of the shift to a digital currency and blockchain powered global financial system”.
Last month, Circle International announced a high yield product out of Bermuda, called Circle Yield, which it described as “a well-regulated alternative yield market for institutional investors and corporate treasurers domiciled in the US and Switzerland”.