Borderless CEO: Circle IPO faces high cost pressure, the stablecoin market has become commoditized

2025-04-04 08:30:24

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ChainCatcher news, according to The Block, Borderless CEO Kevin Lehtiniitty expressed concerns about Circle's IPO prospects. Data shows that Circle's net profit in 2024 is projected to be $155.7 million, a 42% decrease year-on-year, in stark contrast to Tether's $13 billion profit during the same period.

Lehtiniitty, the CEO of Borderless.xyz, pointed out that Circle's high expenses for compliance operations may impact its profitability. In 2024, Circle paid $908 million to its main distribution partner, Coinbase, to maintain the circulation of USDC.

As a veteran in the stablecoin field, Lehtiniitty believes that the stablecoin market has become commoditized, and Circle lacks a unique advantage. He stated that new entrants like PayPal and World Liberty could pose challenges to Circle due to their unique distribution channel advantages.

In previous news, Circle submitted an S-1 filing to the U.S. SEC, intending to go public on the NYSE.

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