Circle Delays IPO: Trump's Trade Policy Introduces Uncertainty

Circle, a company that issues USDC, a US dollar-linked stablecoin, is likely to postpone its initial public offering (IPO) due to economic instability caused by the US president's new trade policies. This was reported by The Wall Street Journal , citing sources familiar with the situation. On April 1, Circle filed registration papers with the U.S. Securities and Exchange Commission (SEC) to take the company public. The firm is now ”anxiously biding its time” before taking further steps. Circle joins a growing list of companies considering delaying their IPOs. They include fintech company Klarna and service StubHub. Tanner causes panic in markets The situation is unfolding amid major stock market turmoil following Trump's April 2 announcement of sweeping trade duties. Investors fear that a prolonged trade war could trigger a global recession. Trump's tariff order imposes a base 10% duty on goods from all countries and retaliatory trade duties on countries that tax U.S. imports. On April 3, more than $2 trillion in market capitalization was wiped off the U.S. stock market as investors switched from risky assets to more stable alternatives in response to rising macroeconomic uncertainty. The S&P 500 Volatility Index (VIX), which measures stock market volatility and is informally referred to as the ”Wall Street Fear Index,” is now above 41 points - indicating extreme concern among investors. Signs of an impending recession Fears of a US recession continue to grow as other countries respond to the Trump administration's trade policies with counter duties. ARK Invest founder Cathie Wood expressed concern about a looming recession even before the US president signed the tariff executive order. ”We are worried about a recession. We think the velocity of money is slowing dramatically,” Wood said at the Digital Asset Summit on March 18. According to information provided by the issuer of the stablecoin, Circle plans to sell its shares under the ticker ”CRCL”, but the documents do not contain data on the number of shares offered or their initial price. That said, the company showed revenue of $1.67 billion for 2024, up 16% from the previous year.