The crypto company Circle tries to double the evaluation in the SPAC deal to $ 9 billion

The US financial company Circle announced on Thursday that his planned deal for listing on Wall Street through a blanksheck company, chaired by the former Barclays boss Bob Diamond, doubled to 9 billion USD.

The group, which operates the StableCoin USD bound to the US dollar, announced that it is driving its plans for merger with Concord Acquisition Corp and for listing on the New York stock exchange. This happens despite the collapse of an earlier $ 415 million agreement to finance the SPAC deal, which the combined company had evaluated with $ 4.5 billion.

The company said instead trying to write down with new investors with an assessment of between $ 7.65 and $ 9 billion, a significant increase, which said it was "improvements to the financial prospects and the competitive position of Circle".

The technology group referred to the growth of its digital currency with more than the double amount of the US dollar Coin in circulation than when the first SPAC agreement was announced last July.

It is expected that the transaction will be completed by December, with the company "a large number of reasons outside the control of the parties" responsible for the fact that the merger was not possible before the original final date in April 2022.

The recent announcement by Circle is part of a growing trend that has led to cryptofocussed companies have received enormous ratings, while investors continue to urge the sector powered by hype. Last month, the FTX cryptocurrency exchange was rated in a new financing round with $ 32 billion.

Concord said that the previous financing agreements with investors such as Marshall Wace, Fidelity Management & Research and accounts were terminated by Cathie Woods Ark Investment Management. However, it added that a new financing agreement could enable the company to raise up to $ 750 million from private investors.

"To be a listed company will further strengthen trust in circle and is a crucial milestone if we continue our mission to build up a more integrative financial ecosystem," said Jeremy Allaire, co -founder and CEO of Circle.

CIRCLE, the USD operates Coin In addition to the cryptocurrency exchange Coinbase, it endeavors to position its stable coin as a trustworthy and regulated tool for the non-cryptocurrency industry, and announced its intention last year to apply for a banking license. In addition to working on transaction processing with the PayPal and Visa payment networks, it has promoted its currency as an instrument for cross -border humanitarian aid and help.

stablecoins should form a bridge between traditional and digital money and help to cope with volatility during trade on the cryptoma market. They are also often used as security to make customers buying other cryptocurrencies.

The amount of the stable coins in circulation shot up last year. According to the Coingecko cryptodata side, the value of USD coin in circulation rose from $ 4 billion at the beginning of 2021 to $ 52 billion, while Tether, the largest stablecoin, increased from about $ 21 billion to more than $ 78 billion today.

stable coins have increasing regulatory pressure because there are concerns that they are a growing systemic risk. In November it was said in a report by the President’s Working Group on Financial Markets, which made up of several US supervisory authorities that laws were "urgently needed" and argued that operators such as banks should be treated.

Some crypto analysts have questioned the strictness of the so-called certificates that publish large stable coin emitters in order to show the amount and type of assets held in their reserves.

us dollar coindie reserves of were subjected to a precise examination after the company started investing in so -called “approved investments” and in cash in 2020. Last August, Circle announced a step towards a conservative approach in which only cash and short-term US state bonds are kept.