BlackRock To Take 10% Stake In Circle’s IPO – BlackRock (NYSE:BLK)

BlackRock BLK is planning to purchase roughly 10% of the shares to be issued in Circle Internet Group‘s upcoming initial public offering, according to a report.

What Happened: The IPO, led by stablecoin issuer Circle USDC/USD and key shareholders including CEO Jeremy Allaire, aims to raise up to $624 million, as disclosed in a recent filing with the U.S. Securities and Exchange Commission.

Investment firm Ark Invest, led by Cathie Wood, has also shown interest in participating in the public offering with a potential commitment of up to $150 million.

The deal has drawn robust demand, with orders exceeding the available shares by multiple times, Bloomberg reported.

The offering is expected to be priced on June 4.

Circle’s USDC stablecoin is largely backed by reserves held in a government money market fund managed by BlackRock.

Also Read: Want To Earn Yield On Your Bitcoin? Here’s How

As of April 30, 2024, Circle’s Reserve Fund managed close to $30 billion in net assets, according to the filing.

BlackRock’s final involvement may come through a fund or affiliated entity and remains subject to change, sources said.

What’s Next: As crypto firms continue to pursue public market listings in the United States, they are finding increased support from figures in the current administration, including President Donald Trump.

This political backing is contributing to a shift in perception and greater legitimacy for the sector.

Meanwhile, stablecoin legislation progressing through Congress would mandate full backing of such digital assets with cash or similarly secure holdings.

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