Circle Internet Financial Ltd. is set to move its legal headquarters from the Republic of Ireland to the United States. A company spokesperson confirmed that this move aligns with its plans to launch an initial public offering (IPO) in the U.S., which were submitted in January.
According to the Bloomberg report, the transition may lead Circle to face higher corporate taxes in the U.S., a shift from Ireland’s lower rates that have attracted global corporations like Apple Inc. and Pfizer Inc. However, recent Organization for Economic Cooperation and Development (OECD) tax reforms have introduced a minimum 15% tax rate on multinational profits.
Circle’s core business is USDC, which has a market capitalization of $33 billion. Issuance reached a high of around $56 billion in June 2022 but later fell following a banking crisis in the U.S., notably the collapse of Silicon Valley Bank.
USDC circulation resumed this year, setting a high of $24 billion, mainly supported by the rebound in the broad cryptocurrency market. Stablecoins are intended to be pegged 1:1 to fiat currencies, and they are always backed by cash and bond reserves.
In this connection, profitability for stablecoin issuers has been on the rise, with Tether Holdings Ltd. reporting a record profit of $4.5 billion in the first quarter, underlined by rising post-pandemic interest rates.
