TechFlow news, April 4 — According to The Block, Borderless CEO Kevin Lehtiniitty has expressed concerns over Circle's IPO prospects. Data shows that Circle’s net profit for 2024 was $155.7 million, a 42% year-on-year decline, sharply contrasting with Tether’s $13 billion in profits during the same period.
Lehtiniitty, CEO of Borderless.xyz, pointed out that Circle’s high compliance-related operating costs could impact its profitability. In 2024, Circle paid Coinbase, its primary distribution partner, $908 million in fees to maintain USDC circulation.
As a stablecoin industry veteran, Lehtiniitty believes the stablecoin market has become commoditized and that Circle lacks distinctive advantages. He stated that new entrants such as PayPal and World Liberty Financial could challenge Circle by leveraging their unique distribution channel strengths.
Earlier report, Circle filed an S-1 form with the U.S. SEC for a planned NYSE listing
