Stablecoin issuer Circle plans to move its legal base from Ireland to the US, according to recent court filings, Bloomberg reported. This action is significant for the company behind the second-largest stablecoin, USDC, ahead of its anticipated initial public offering.

The decision to shift its legal base has significant implications for Circle, particularly in terms of taxes. While Ireland has been attractive to multinational corporations due to its relatively low corporate taxes, recent reforms imposing a minimum 15% tax on the profits of larger multinationals have eroded some of that advantage.

Business Dynamics

By moving to the US, Circle may face heavier tax obligations, signaling a strategic decision amidst evolving global tax regulations. Circle is behind USDC, a stablecoin with a market capitalization of more than $30 billion. Despite facing challenges in the past, including banking issues with Silicon Valley Bank, USDC has experienced a recovery amid a positive sentiment in the crypto markets.

Circle's latest decision is closely monitored by traditional finance players and the crypto community. The company is backed by Wall Street giants, including Goldman Sachs Group Inc., BlackRock, and Fidelity Management and Research, as well as major industry brands like Coinbase.

Expect ongoing updates as this story evolves.