Bloomberg: USDC market share continues to shrink, Circle's IPO plans may face challenges

ChainCatcher news, according to Bloomberg, as its main product USDC stablecoin's market share continues to shrink, Circle faces a daunting challenge for its IPO. The market share of USDC has dropped to below 19%, far lower than the level when the company withdrew its public listing last December. Meanwhile, Circle has begun discussions with advisors, considering an IPO early next year.

It is reported that Circle's USDC and its competitor Tether's USDT stablecoin are both pegged to the US dollar, playing a key role in the cryptocurrency market, especially as an intermediary step for purchasing tokens like Bitcoin with fiat currency. However, due to its close ties to the US banking system, Circle's reputation has been damaged following the Silicon Valley Bank collapse, leading to a significant reduction in USDC circulation. Circle and Tether profit by investing the reserves backing their stablecoins (which are $24 billion and $87 billion respectively), but the decline in USDC's market share poses a greater IPO challenge for Circle.

Despite having high-profile investor support, including Goldman Sachs, there are still doubts in the market about its long-term profitability and competitiveness.