Former Barclays boss Bob Diamond seeks to go public with crypto firm Circle

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Circle, the U.S. financial technology company behind USD Coin, has announced plans to list on Wall Street through a deal with a blank check company chaired by former Barclays chief Bob Diamond.

The group announced Thursday that it would partner with Concord Acquisition Corp and be listed on the New York Stock Exchange. The deal, which Circle says has earned it an enterprise value of $ 4.5 billion, is backed by some of Wall Street’s most prominent investors, including Marshall Wace, Cathie Wood’s Ark Investment Management and Third Daniel Loeb point.

Circle operates the digital currency USD Coin, a stable coin pegged to the US dollar. Stablecoins are intended to be a bridge between traditional currency and digital currency, and aim to help reduce price volatility in the crypto market. They are also often used as collateral to make it easier for customers to buy other cryptocurrencies.

Circle’s move points to a trend this year for crypto-focused companies to float on public stock markets. Coinbase, the exchange, debuted in New York in April while Bakkt, a cryptocurrency platform majority owned by Intercontinental Exchange, is also expected to be listed following a combination with the acquisition vehicle. Victory Park Capital. Its listing project before July has been delayed.

The company said there are now more than $ 25 billion in coins in circulation, up more than 3,400% this year. He said stablecoin has supported more than $ 785 billion in transactions recorded on its blockchain.

“Circle is the true pioneer of trusted digital currencies, an increasingly critical part of the global financial system,” said Diamond.

But global regulators are increasingly concerned that stablecoins – many of which are backed by reserves of hard currency such as the US dollar – pose growing systemic risk. Boston Federal Reserve Chairman Eric Rosengren warned last month that they would be a “concern” unless authorities take control of the rapidly growing market.

Some crypto analysts have questioned the thoroughness of the so-called attestations from large issuers that Circle publishes to show the amount and types of assets held in its reserves.

Jeremy Allaire, CEO of Circle, said on Twitter that the group “intends to become the most public and transparent operator of full reserve stablecoins on the market today.” He promised the group would provide “a detailed summary” of USD Coin’s reserves.

In February, Tether, the world’s largest stablecoin, and a related trading platform Bitfinex pledged to provide more transparency on its reserves under an $ 18.5 million settlement with the Attorney General’s office. New York. The companies have neither admitted nor denied the wrongdoing.

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Fitch, the credit rating agency, warned last week that a rush to convert cryptocurrencies into traditional currency could destabilize credit markets in the short term. Tether and USD Coin say they hold billions of dollars of conventional short-term assets in their reserves.

Under the USD listing deal announced Thursday, Marshall Wace, Fidelity and Ark have pledged $ 415 million while Concord will bring $ 276 million held in its account, much of it from its IPO. in December.

Circle is co-founded by Allaire, the internet entrepreneur previously behind the online video platform Brightcove. Diamond will join the board of directors.

The deal is expected to be finalized by the end of the year.

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