Circle May Delay IPO as Trump’s Tariff Policies Rattle Markets

Stablecoin issuer Circle, the company behind USDC, is reportedly considering postponing its initial public offering amid escalating market volatility triggered by U.S. President Donald Trump’s sweeping trade tariffs, according to The Wall Street Journal.

While Circle officially registered its IPO with the Securities and Exchange Commission (SEC) on April 1, insiders told the Journal the company is now “waiting anxiously” before advancing further. No details have been disclosed on the number of shares to be offered or the initial price, though the firm plans to trade under the ticker CRCL.

The uncertainty stems largely from Trump’s April 2 tariff order, which imposed a 10% baseline tariff on all countries and reciprocal tariffs targeting nations that levy taxes on U.S. imports. That move has triggered global trade concerns, wiping more than $2 trillion from U.S. stock markets in just one day. Investors pulled capital out of riskier assets and poured it into cash and government bonds.

The VIX — often called Wall Street’s “Fear Index” — climbed past 41, its highest reading in over a year, reflecting widespread anxiety among investors.

Circle now joins other major firms like Klarna and StubHub that are reassessing IPO timelines due to the growing economic headwinds.

Despite growing demand for stablecoins and a broader crypto rally earlier this year, Circle’s IPO ambitions could be dampened if macro conditions worsen or if market sentiment continues to deteriorate.

Even prior to the tariff announcement, ARK Invest’s Cathie Wood warned of a recession, pointing to declining monetary velocity and weakening global demand.

Should Trump’s trade strategy escalate into a full-blown trade war, the pressure on firms eyeing public listings — especially those in crypto and fintech — may only intensify.

According to the firm’s S-1 filing with the SEC, Circle booked $155.7 million in net income for 2024, a steep drop from $267.6 million in 2023. Though this reflects a sharp rebound from the $768.8 million loss in 2022, some observers see troubling signs when comparing Circle’s performance to its offshore rival Tether, which reported $13 billion in profits for the same period — most of it from U.S. Treasury yield.

Kevin Lehtiniitty, CEO of Borderless.xyz and a veteran of the stablecoin industry, says Circle’s relatively slim profit margins stem from a “compliance-first” approach. Circle has invested heavily in regulatory licenses, personnel, lobbying, and partnerships with trusted financial entities. In contrast, Tether has built its business on a permissionless, crypto-native model — with a leaner operational footprint and less regulatory overhead.

The most glaring cost in Circle’s books was $908 million paid to Coinbase in 2024 for USDC distribution — a cost of doing business that Lehtiniitty says reflects the realities of being second place in a commoditized market.

Lehtiniitty, who helped design TrueUSD, argues that USDC doesn’t hold any natural advantage in the distribution game. He points to PayPal’s PYUSD as a potential disruptor with baked-in market access. And World Liberty Financial’s USD1, backed by President Trump’s family, could benefit from a political tailwind few others can claim.