Circle, the company behind the USDC stablecoin, is considering delaying its initial public offering (IPO) due to economic uncertainty caused by new U.S. trade tariffs.
The Wall Street Journal reports that Circle has filed registration papers with the SEC on April 1 but is now hesitant to proceed. This hesitation is part of a broader trend, as other companies like Klarna and StubHub are also reevaluating their IPO plans in light of recent market reactions.
On April 2, President Trump announced new tariffs, including a 10% base duty on goods from all countries. These tariffs have raised concerns about a potential global trade war, leading to significant market turmoil.
In just one day, over $2 trillion in U.S. market value was lost as investors moved away from riskier assets. The S&P 500 Volatility Index (VIX) surged past 41, indicating high levels of fear among investors.
The situation has led to growing worries about a possible U.S. recession. Other countries have responded with counter-tariffs, further escalating tensions. Cathie Wood from ARK Invest had previously warned about slowing economic momentum, noting that “the velocity of money is slowing dramatically.”
