Catena, Thursday, June 12, 2025-Digital investment firm Arca has dumped all of its Circle shares and severed business ties with the stablecoin issuer following a dispute over its initial public offering, the company said Thursday.
Arca’s Chief Investment Officer Jeff Dorman revealed the exit after accusing Circle of sidelining the firm during its NYSE listing. Dorman said Arca had placed a $10 million order for shares in April but was allocated only $135,000 worth.
He criticized Circle’s communication and alleged the company deliberately ignored Arca’s interest.
Circle, which operates USDC, the world’s second-largest stablecoin, went public on the New York Stock Exchange on June 5 under the ticker CRCL.
Its IPO raised $1.05 billion, and shares soared 167% on the first day of trading, closing at $82. The stock continued climbing, reaching $115 on June 6.
In the wake of the fallout, Arca announced it would no longer use USDC in its operations and would inform all trading partners of the policy change. Dorman’s critique drew attention to a rift between traditional financial aspirations and crypto-native investors.
Circle’s public debut was seen as a major moment for crypto’s integration into regulated finance. CEO Jeremy Allaire called it a milestone that reinforced the company’s transparency and compliance.
Despite net income falling to $156 million last year, Circle reported $1.68 billion in revenue and continues to see strong adoption of USDC, which currently holds a $61 billion market cap.
