Stablecoin firm Circle, the issuer of the USDC (USDC) dollar-pegged token, might delay its planned initial public offering (IPO) amid macroeconomic uncertainty over US President Donald Trump’s trade policies, The Wall Street Journal reported.
Circle registered with the United States Securities and Exchange Commission (SEC) on April 1 to take the company public. It is now “waiting anxiously” before taking further steps, the Journal reported, citing people familiar with the matter.
Circle joins a growing list of companies considering IPO delays, including fintech company Klarna and ticketing firm StubHub.
Circle’s S-1 registration form for its initial public offering. Source: SEC
Circle is planning to sell its shares under the ticker symbol "CRCL." Circle's prospectus materials do not provide details of the number of shares to be offered or the initial stock price.
Circle's potential delay comes amid turmoil in the stock market as trillions in shareholder value dissipated following Trump's April 2 announcement of sweeping trade tariffs and investor fears that a protracted trade war could cause a global recession.
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Trump's protectionist trade policies crash markets
Trump's tariff order established a 10% baseline tariff on all countries and reciprocal trade tariffs on countries that tax US imports.
Over $2 trillion was wiped from the US stock market on April 3 as investors pivoted from risk-on assets to less volatile alternatives as a response to the growing macroeconomic uncertainty.
US stocks shed trillions in shareholder value following Trump’s sweeping tariff order. Source: TradingView
The Volatility S&P 500 Index (VIX), a measure of stock market volatility colloquially named the "Wall Street Fear Index," is currently over 41 — an indication of extreme fear among stock market investors.
Fears of a US recession continue to mount as other countries respond to the Trump administration's trade policies with counter-tariffs.
ARK Invest founder Cathie Wood voiced concerns over a looming recession prior to the US President signing the tariff order.
“We are worried about a recession. We think the velocity of money is slowing down dramatically,” Wood told an audience gathered for the Digital Asset Summit on March 18.
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