Can Circle’s IPO boost USDC in its fight for market share?

Dyskant explains that, at both Federal and State levels, crypto is still a theme circulated by uncertainty.

“There is uncertainty in the classification of digital assets, exchanges, and custodians, including the competent authority to regulate the theme, SEC or CFTC [Commodity Futures Trading Commission]. (SEC vs. CFTC). Although some relevant bills are being considered in the country, including bipartisan ones, led by Congress members from both US parties, such bills have not been voted on,” explains Dyskant.

Therefore, from a regulatory perspective, it is difficult to forecast how Circle’s IPO could influence USDC. Moreover, SEC’s investigations about PYUSD, PayPal’s stablecoin, being a security or not adds more uncertainty and another layer of difficulty to tell if the market, especially institutions, will be leaning towards using USDC.

Relevant changes

Although Circle’s IPO might not imply a gain in trust among investors for USDC, it may still bring fundamental changes to the market. Dan Yamamura, founding partner at Brazilian asset manager Fuse Capital, highlights that the USDC issuer’s plans to go public can create a benchmark for transparency in the stablecoin market.

“When the company is publicly listed, it needs to show a level of transparency that’s important for a stablecoin issuer. This is the first positive change I see, and it applies to the stablecoin market as a whole,” assesses Yamamura.

Speaking of Circle specifically, Fuse’s founding partner points out that the public listing gives the company a capital injection. As a result, Circle would have more resources to invest in technology and marketing, two key tools to foster USDC growth and make it more competitive against USDT.

Another benchmark, and the last change a successful IPO from Circle could bring according to Yamamura, is a reference point for evaluating publicly listed stablecoin issuers. “It will be beneficial for the stablecoin market to understand how to evaluate those publicly listed issuers,” concludes Fuse’s founding partner.