According to The Block, Borderless CEO Kevin Lehtiniitty expressed concerns about Circle's IPO prospects. Data shows that Circle's net profit for 2024 was $155.7 million, a 42% year-on-year decline, in stark contrast to Tether's profit of $13 billion during the same period.
Borderless.xyz's CEO Lehtiniitty pointed out that Circle's high compliance operating expenses might affect its profitability. In 2024, Circle paid $908 million in fees to its primary distribution partner Coinbase to maintain USDC circulation.
As a veteran in the stablecoin field, Lehtiniitty believes the stablecoin market has become commoditized, and Circle lacks unique advantages. He stated that new entrants like PayPal and World Liberty might challenge Circle through their distinctive distribution channel advantages.
Previously, Circle submitted an S-1 filing to the US SEC, intending to list on the New York Stock Exchange.
