SPAC Concord, chaired by former Barclays CEO Bob Diamond, has canceled USDC's Circle acquisition deal worth USD 9 billion. The deal, which was initially agreed during the crypto bull market in July 2021 would make Circle the first public stablecoin issuer.
Many observers connect Circle deal cancellation with uncertainty in the industry caused by the failure of digital asset exchange FTX and rumors about problems of other big-name crypto firms. After the FTX collapse, Circle said it had minimal exposure to FTX and its sister trading firm Alameda Research. So, it could be the negative valuation adjustment, due to overall industry risks, that broke the deal.
"We are disappointed the proposed transaction timed out; however, becoming a public company remains part of Circle’s core strategy to enhance trust and transparency, which has never been more important,” said Jeremy Allaire, the CEO of Circle.
So, Circle has not abandoned its IPO plans and may just choose to overwinter as a private company.
Having some of its commitments released, Bob Diamond, on the other hand, is reportedly looking to invest in troubled Credit Suisse sell-off assets.