Former Barclays PLC (LSE:LON:BARC) boss Bob Diamond and Circle Internet Financial, issuer of the cryptocurrency market’s second-largest stablecoin USDC, have scrapped plans for a reverse merger through Diamond’s US-based special purpose acquisition vehicle (SPAC) Concord Acquisition Corp.
Initially announced in July 2021, the proposed combination sought a nine-billion-dollar valuation for Circle, but has since timed out after the parties failed to agree on terms.
Pegged in value to the US dollar, Circle’s USDC stablecoin is one of the most important digital assets in the cryptocurrency markets, regularly posting daily trading volumes of over US$2bn.
Speaking on the deal’s collapse, Circle co-founder and chief executive Jeremy Allaire said: “Concord has been a strong partner and has added value throughout this process, and we 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.”
Diamond added: ”I remain confident in Circle’s regulatory-first approach to building trust and transparency in the financial industry, which has never been more important, and I will continue being an advocate for the company as it continues to grow.”
Read More: Bob Diamond-backed Panmure Gordon eyes up finnCap
Diamond is one of London's best-known (some would say infamous) figures in the financial sector who, with his righthand man Rich Ricchi, garnered a controversial reputation during their time at British financial institution Barclays in the early 2010’s.
Diamond resigned from Barclays following the 2012 Libor scandal involving rigged interest rates which culminated in a £290mln (US$353mln) fine for Barclays.
Completion of the SPAC deal would have made Circle the first crypto firm of its kind to be listed on the New York Stock Exchange.
But with the crypto markets in disarray and SPAC deals garnering a torrid reputation in recent years, failure to execute the deal comes as little surprise.