Circle to Relocate Legal Domicile from Ireland to U.S.

1 Mins read

The move comes ahead of the USDC issuer’s potential IPO, for which it filed paperwork with the SEC in January.

Circle, the issuer of DeFi’s second-largest stablecoin, USD Coin, plans to change its legal domicile from the Republic of Ireland to the United States.

The relocation aligns with Circle’s stated intention of going public, with the company having filed a Form S-1 with the SEC in January. A spokesperson for Circle confirmed the move to Bloomberg, although specific reasons behind the decision were not disclosed.

This change is a significant step for Circle, particularly considering the tax and regulatory implications.

Historically, Ireland has offered reduced levels of corporate taxation compared to the United States. However, global tax reforms, particularly those led by the Organization for Economic Cooperation and Development (OECD), which clamped down on multinational enterprises (MNEs) to enforce a minimum of 15% tax on MNE profits worldwide, diminish the benefits once enjoyed by corporations in low tax jurisdictions.

Additionally, this move places Circle squarely under the regulatory oversight of the United States, including added scrutiny from the SEC.

Circle’s core business revolves around managing and operating the USDC stablecoin, which boasts a market capitalization of nearly $33 billion.

USDC Market Capitalization chart
USDC Market Capitalization

With its sights set on an IPO, the company appears to be aligning its legal and operational framework to bolster investor confidence and more effectively navigate U.S. regulatory waters.

Source link

Related posts

The Ultimate Guide to Web3 Gaming in 2024

18 Mins read
Imagine an era where gaming transcends the screen, and players wield true ownership over their virtual assets. Welcome to the digital renaissance…

The Pixelverse Chronicles: A Journey into the 2D Pixel Metaverse

17 Mins read
Did you ever imagine being fully immersed in a cyberpunk saga, pixel by pixel? The concept of a metaverse may be familiar,…

U.S. Securities Regulator Approves Spot Ether ETFs in Landmark Decision

1 Mins read
The SEC has issued an omnibus approval for ETH ETF applicants. Just over four months after Bitcoin ETFs began trading in the…



Leave a Reply

Your email address will not be published. Required fields are marked *