Circle International Finance, the crypto company behind $USDC, recently announced it has mutually terminated the contract with Concord Acquisition Corp to go public this year after it failed to receive approval for the transaction from the SEC.
The “transaction agreement” was signed previously in 2021 by which Concord would acquire the company.
According to Jeremy Allaire, CEO of Circle, the deal included a proposed business plan for the deSPAC transaction which failed to pass the qualification by the Securities and Exchange Commission.
Circle seems to be looking at the long-term picture of becoming a public company; the team is slowing down its expansion this year. “I am of the very firm conviction that we are going to decisively leave the speculative value phase and enter the utility value phase,” Allaire said.
The company behind USDC is still going strong as it claimed to have generated a net income of $43 million and closed off its third quarter to $400 million worth of unrestricted cash.
After Terra’s UST coin collapse, the majority of the finance industry became hesitant with investing in stablecoins. Nonetheless, USDC has managed to become a strong advocate for stablecoin value.
Circle is focusing on expanding, growing, and building with large companies in the Web3 space to become more stable and strong enough to withhold its position and receive approval from SEC to go public.
“I remain confident in Circle’s regulatory-first approach to building trust and transparency in the financial industry,” Bob Diamond, Chairman of Concord said in the press release.
Currently, the $USDC coin trades at $1.00 with a 13.08% increase in its 24h trading volume, based on CoinMarketCap.
