Bullish Utilizes Stablecoins for $1.15 Billion IPO Settlement
By: Isha Das
Bullish, a prominent crypto exchange, has announced that a significant portion of its $1.15 billion IPO proceeds has been received and settled using various stablecoins. These include Ripple’s RLUSD on the XRP Ledger and the USD1 coin linked to former US President Donald Trump, revealing an innovative use of digital assets in traditional financial operations. Moreover, other stablecoins such as USDC and EURC from Circle, PYUSD and USDG from Paxos, as well as several other instruments, played a vital role in the transaction.
This strategic move by Bullish underscores its commitment to integrate blockchain technology within traditional financial markets. The bulk of the stablecoin transactions were conducted on the Solana network, highlighting its capacity for rapid, reliable transactions. Jefferies served as the billing and delivery agent, facilitating the necessary minting, conversion, and settlement processes across various jurisdictions. Post conversion, the funds were transferred securely to Coinbase for custody, ensuring a robust and regulated handling mechanism.
The Bullish IPO, officially closed on August 14, has set a milestone with its shares priced at an impressive $37, significantly outperforming the anticipated $32 to $33 range. This uptick in demand has resulted in a market valuation of $5.4 billion for the exchange, signifying the increasing investor confidence in platforms that are leveraging blockchain for efficient transaction settlements. CFO David Bonanno emphasized that stablecoins are integral to Bullish’s capital management strategy, particularly attributing this to the expediency and clarity provided by networks like Solana.
The spotlight on RLUSD and USD1 has surged, with these stablecoins gaining substantial traction among institutional players. Although Bullish has not disclosed the exact volume of these tokens used, their involvement is a testament to their growing relevance. Ripple’s $75 million credit facility for Gemini and the Abu Dhabi investment firm MGX's substantial $2 billion transaction with Binance, both involving these tokens, underscore their pivotal role in the financial ecosystem. Such developments highlight the increasing adoption of blockchain-based solutions in corporate financial transactions.
