According to The Block, Borderless CEO Kevin Lehtiniitty has expressed concerns about Circle's IPO prospects. Data show that Circle's net profit in 2024 is $155.70 million, down 42% year-on-year, in sharp contrast to Tether's profit of $13 billion in the same period.
Borderless.xyz CEO Lehtiniitty noted that Circle's high spending on compliance operations could impact its profitability. In 2024, Circle paid only $908 million to its primary distribution partner, Coinbase, to maintain USDC in circulation.
As a veteran of the stablecoin space, Lehtiniitty believes that the stablecoin market has become commoditized and Circle lacks a unique advantage. He says new entrants like PayPal and World Liberty could challenge Circle with their unique distribution channel advantages.
Previously, Circle submitted an S-1 document to the US SEC and plans to list on the New York Stock Exchange.
Borderless CEO: Circle IPO is facing high cost pressure, and the stablecoin market has become commoditized
2025-04-04 00:46:44
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