In yet another sign that traditional finance is diving deeper into the crypto world, asset management giant BlackRock is reportedly preparing to make a bold move into the stablecoin space. According to sources cited by Bloomberg on May 28, BlackRock is eyeing a 10% stake in Circle’s upcoming initial public offering (IPO)—a deal that could significantly elevate the firm’s exposure to blockchain-based financial infrastructure.
Circle, best known as the issuer of the USD Coin (USDC) stablecoin, launched its IPO on May 27, offering 24 million shares of Class A common stock. These shares include both new issuances by the company and offerings from existing stakeholders, including CEO and co-founder Jeremy Allaire. The IPO aims to raise approximately $624 million, and early indications suggest it’s already oversubscribed, signaling strong demand.
Joining BlackRock in this potential strategic investment is ARK Invest, helmed by Cathie Wood. ARK has also shown interest in acquiring around $150 million worth of Circle shares. If both investments go through as reported, it would mark a substantial vote of confidence in Circle from two of the most prominent names in the investing world.
This isn’t BlackRock’s first foray into the digital asset space. The firm has previously partnered with Circle, and it currently manages some of the reserve assets backing USDC. A deeper financial commitment via the IPO suggests BlackRock sees Circle not just as a partner but as a long-term cornerstone in the evolving digital economy.
Circle initially filed for its IPO on April 1 but temporarily put its plans on hold, citing an unpredictable economic climate. During that pause, rumors swirled that Circle might be acquired, with crypto heavyweights Ripple and Coinbase reportedly expressing interest. However, Circle swiftly shut down such speculation, declaring unequivocally that it’s “not for sale.”
Now, with the IPO back on track and drawing substantial institutional attention, Circle is poised to fortify its standing as a leading player in the stablecoin market. As of May 28, USDC boasts a market capitalization of roughly $60.9 billion, giving it a 24.6% share of the overall stablecoin market—second only to Tether’s USDT.
According to Circle’s recent S-1 filing with the U.S. Securities and Exchange Commission, the company generated $1.67 billion in revenue during 2024, a 16% increase compared to the previous year. However, net income fell significantly—from $267.6 million in 2023 to $155.7 million in 2024—representing a 41.8% year-over-year decline. Despite the drop in profits, the consistent revenue growth underscores strong demand and scalability potential for its digital dollar infrastructure.
Meanwhile, Tether, Circle’s primary rival, appears content to remain in the private domain. In April, Tether CEO Paolo Ardoino stated on X (formerly Twitter) that the company “doesn’t need to go public,” suggesting it sees no strategic benefit in IPO participation for now.
As the stablecoin sector matures and financial heavyweights position themselves for long-term involvement, Circle’s IPO may serve as a pivotal moment. If BlackRock and ARK follow through on their interest, the IPO could be remembered not only for its capital raise but for setting the tone for how institutional finance and crypto-native firms align moving forward.
