Potential Crypto Firms Eyeing Public Market Debut in 2021

• Circle Plans Second Attempt at Public Listing
• Optimistic Outlook for Crypto in a Strengthening Economy
• Spot Bitcoin Exchange-Traded Fund (ETF) Launch
• Potential IPO Candidates in Crypto
• Exchange, Custody and Stablecoin Sectors Eyed for Growth
• Other Potential Contenders for Public Listing
• Future of Public Listings in Crypto Space

Circle Plans Second Attempt at Public Listing

Circle, the prominent US-based stablecoin issuer, is reportedly making a second attempt at proceeding public, according to a confidential document submitted to the Securities and Exchange Commission (SEC). This move follows their first unsuccessful attempt at merging with a special purpose acquisition company (SPAC) in 2021.

Optimistic Outlook for Crypto in a Strengthening Economy

With the resurgence of cryptocurrencies and the economy growing stronger, there may be an upswing in investment funding and potential initial public offerings (IPOs) in the blockchain sector this year. Despite a 15-year history, there are surprisingly few publicly-traded companies in the crypto sector.

In December, Goldman Sachs projected an increase in IPO activities, especially if the Federal Reserve lowers interest rates, reducing the cost of deal-making and stimulating the economy. Financial market strength can lead to robust public offerings, and the strengthening of crypto markets is becoming increasingly noticeable.

Spot Bitcoin Exchange-Traded Fund (ETF) Launch

The recent launch of a spot bitcoin ETF has pushed the crypto industry into a more mature phase. Several companies have amassed substantial capital, and the oldest firms' venture capital backers, who typically operate on 10-year time horizons, are likely eyeing returns.

Potential IPO Candidates in Crypto

Over a dozen unicorns, or private companies with valuations exceeding $1 billion exist in crypto and are the most probable IPO candidates. While some may opt to remain private to maintain corporate control and limit scrutiny, most firms that raise outside capital see a public listing or bankruptcy as the two most viable exit options for investors.

Exchange, Custody and Stablecoin Sectors Eyed for Growth

Deals in the exchange, custody and stablecoin sectors, which have vast potential for expansion amid a crypto rebound, are expected to be concentrated. In November, Kraken's CEO, Dave Ripley, expressed strong consideration for going public, and other firms such as Anchorage and BitGo, leaders in the crypto custody sector, are also likely exploring public listings.

Other Potential Contenders for Public Listing

Paxos, the third-largest stablecoin issuer, could also be a public listing contender. Paxos serves third parties seeking to create branded stablecoins, such as PayPal's recently launched PYUSD token and Binance's discontinued BUSD coin.

Companies like Ledger and Trezor, Ripple and BitPay, and Bitwise, as well as emerging sectors in the space, could also be considering a public stock offering. Several are involved in crypto mining, a sector which is relatively easier to predict cash flows in, despite Bitcoin$42,260 -0.64%'s price volatility.

Future of Public Listings in Crypto Space

Delphi Digital's CEO, Anil Lulla, posits that the success of Circle's IPO could signal a trend for other companies to explore going public. The future of public listings in the crypto space is laced with intrigue and potential, and the next few years could be transformative.

Edited by Jonathan Stoker