Circle Faces Price Pressure Before IPO: Stablecoin Expert Warns

A veteran in the stablecoin industry is sounding a warning for Circle as it prepares for its highly anticipated initial public offering (IPO). Kevin Lehtinitti, CEO of Borderless, voiced concerns about USDC issuer’s profitability in 2024. He attributes this to rising compliance costs necessary for obtaining regulatory approval. This comes as Circle’s recent deal with Coinbase, a former Centre consortium partner, further highlights its substantial expenses. Lehtinitti contends that the USDC issuer’s heavy investment in licensing and compliance staff may ultimately hinder its success compared to competitors like Tether.