The company behind USDC, the second-largest stablecoin by market capitalization, is backing out of a deal that was worth billions of dollars to go public.

There has been a mutual termination of the proposed business deal between Circle and Concord Acquisition Corp, as stated in an official statement.

Publicly traded Concord Acquisition Corp. was established for the primary aim of acquiring other businesses.

According to Bob Diamond, chairman of Concord Acquisition Corp, “Circle plays a key role in the blockchain’s disruption of financial services.”

Diamond said that he remains confident “in Circle’s regulatory-first approach to building trust and transparency in the financial industry, which has never been more important.” He added that he “continue being an advocate for the company as it continues to grow.”

The value of the proposed IPO agreement between the two companies was put at $9 billion. According to reports, the cancellation of the proposed deal was agreed by the Boards of Directors of both corporations.

Concord’s Jeremy Allaire, co-founder and CEO of Circle, revealed that “Concord has been a strong partner and has added value throughout this process” and added that the firm “will continue to benefit from the advice and support of Bob Diamond and the broader Concord team.”

“We are disappointed the proposed transaction timed out, however, becoming a public company remains part of Circle’s core strategy to enhance trust and transparency, which has never been more important.”

Circle’s Dominance So Far

In February, Circle had boosted its market capitalization to $9 billion following a revised merger deal with 2020’s Special purpose acquisition company (SPAC) Concord Acquisition Corp.

According to a press release, Circle had canceled its former business contracts with Concord and replaced them with a new contract with a target completion date of December 8, 2022 and a possible extension date of January 31, 2023. In the meantime, Circle has lately moved their USDC reserve to a BlackRock fund.