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

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.