The worlds of traditional finance and cryptocurrency are colliding powerfully. BlackRock Inc., the globe’s largest asset manager, is now eyeing a significant piece of Circle Internet Financial Ltd.’s upcoming stock market debut. According to informed sources, BlackRock plans to acquire roughly 10% of the shares offered in Circle’s initial public offering (IPO). This potential move signals deepening ties between established finance giants and the digital asset frontier.
BlackRock Targets Major IPO Slice
Specifically, BlackRock aims for a substantial position in this landmark offering. Insiders reveal the firm wants about 10% of the available IPO shares. This intention highlights serious institutional interest. Furthermore, it shows a strategic bet on stablecoins future. Circle is the issuer of USDC, a leading dollar-pegged cryptocurrency. BlackRock’s potential investment would be a major endorsement.
Circle Seeks $624 Million
Circle officially filed its IPO plans with regulators this Tuesday. The company and some shareholders seek significant capital. They aim to raise up to $624 million collectively. This fundraising effort involves selling 24 million Class A shares. Circle itself will offer 9.6 million shares. On the other hand, existing stakeholders plan to sell 14.4 million shares. Shares are expected to price between $24 and $26. Consequently, they will soon trade on the Nasdaq under the ticker symbol “CRCL.”
ARK Invest Joins
BlackRock isn’t the only heavyweight showing enthusiasm. Cathie Wood’s ARK Investment Management also signalled strong interest. ARK indicated it may buy up to $150 million worth of shares. This substantial potential commitment adds further prestige. Moreover, Bloomberg News reports overwhelming demand. Orders already cover multiple times the available shares. The deal is scheduled to price next Tuesday, June 4th.
Also read: Trump’s Tariffs Blocked: Will Bitcoin Pull Back Before Hitting $120,000?
Relationship Between BlackRock & Circle
A pre-existing partnership supports this potential investment. BlackRock currently manages the Circle Reserve Fund. This crucial fund holds reserves backing the USDC stablecoin. Crucially, it holds 90% of USDC’s backing assets. The fund reported a massive $53.5 billion balance as of May 22nd. This existing, billion-dollar relationship provides unique insight. Therefore, BlackRock’s IPO interest stems from deep familiarity.
What can we expect from this deal?
However, details remain fluid and could still change. Sources caution that BlackRock might acquire the stake indirectly. It could use a specific vehicle or affiliated entity. Alternatively, the firm might ultimately decide against participating.
Crypto in Public Markets
If finalised, BlackRock’s entry would mark a pivotal moment. It represents a major traditional finance player deepening its crypto commitment. This move would further integrate stablecoins like USDC into mainstream finance. Simultaneously, Circle’s IPO stands out in a sparse field. It follows a long lull in major U.S. crypto public listings.
Circle previously attempted going public via a SPAC merger in 2022. That deal was later abandoned. Now, the path seems clearer. Growing political acceptance also plays a role. President Trump and allies increasingly embrace crypto. Proposed U.S. regulations, meanwhile, demand stablecoin stability. They would require full backing by cash and safe assets. This is one of the reasons why Circle’s regulated approach is gaining appeal. This IPO could sign a new phase for crypto-native firms accessing public capital.
Written By Fazal Ul Vahab C H
