Borderless CEO: Circle IPO is facing high cost pressure, and the stablecoin market has become commoditized

According to The Block, Borderless CEO Kevin Lehtiniitty has expressed concerns about Circle's IPO prospects. Data show that Circle's net profit in 2024 is $155.70 million, down 42% year-on-year, in sharp contrast to Tether's profit of $13 billion in the same period.
Borderless.xyz CEO Lehtiniitty noted that Circle's high spending on compliance operations could impact its profitability. In 2024, Circle paid only $908 million to its primary distribution partner, Coinbase, to maintain USDC in circulation.
As a veteran of the stablecoin space, Lehtiniitty believes that the stablecoin market has become commoditized and Circle lacks a unique advantage. He says new entrants like PayPal and World Liberty could challenge Circle with their unique distribution channel advantages.
Previously, Circle submitted an S-1 document to the US SEC and plans to list on the New York Stock Exchange.