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

According to The Block, Borderless CEO Kevin Lehtiniitty expressed concern about Circle's IPO prospects. Data shows that Circle's net profit in 2024 was $155.7 million, a decrease of 42% compared to the same period last year, forming a stark contrast with Tether's profit of $13 billion during the same period.

Kevin Lehtiniitty, CEO of Borderless.xyz pointed out that Circle’s high expenditure on compliance operations could affect its profitability. In 2024, Circle paid only $908 million in fees to its main distribution partner Coinbase for maintaining USDC circulation.

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

Earlier news reported that Circle submitted an S-1 file to the U.S. SEC intending to list on NYSE.