Circle, a cryptocurrency-focused financial services company behind the USD Coin (USDC) stablecoin, has announced the termination of its deal with special purpose acquisition company (SPAC) Concord Acquisition Corp.
The boards of directors of both companies agreed to pull the plug on the tie-up.
In a statement, Circle CEO Jeremy Allaire sayid that he and his team remain committed to building "a long-term public company."
The issuer of the second largest stablecoin announced that it would go public via the now-canceled SPAC back in July 2021.
Many private companies choose to merge with SPACs, which are also called "blank check companies," instead of going public via a traditional IPO due to lower fees and other benefits.
Circle failed to gain approval from the U.S. Securities and Exchange Commission to "consummate a business combination."
The SEC was unlikely to grant Circle approval under the leadership of crypto-weary boss Gary Gensler, which is why the termination of the deal does not come as a surprise.
Circle remains one of the biggest private crypto companies. In April, it announced a $400 million funding round that included such big names as BlackRock and Fidelity.
As of now, USD Coin is the fifth largest stablecoin with a market cap of $43.3 billion. It remains the second biggest stablecoin (behind Tether only).
In his statement, Allaire says that he hopes that the cryptocurrency industry will leave the speculative value phase and enter a new utility phase.