Massive IPO Success: Circle, issuer of the USDC stablecoin, raised $1.1 billion in its initial public offering (IPO) on June 5, 2025, with shares surging 168% from $31 to $83.23 by the close of its first trading day.
Historic Surge: The stock peaked at $123.51 on June 6, nearly quadrupling its IPO price, though trading was halted multiple times due to volatility.
Wall Street’s Crypto Embrace: Analysts see Circle’s IPO as a turning point for decentralized finance, with experts like Bitwise’s Juan Leon calling it a “moon landing” moment for stablecoins.
Financial Concerns: Despite the hype, Circle’s $65 million Q1 2025 net income relies heavily on interest revenue, raising concerns about sustainability if rates drop.
Market Impact: The IPO left $1.72 billion on the table, ranking as the seventh-largest underpricing in decades, highlighting Wall Street’s favoritism toward its clients over the company.
On June 5, 2025, the decentralized finance (DeFi) world witnessed a seismic event as Circle Internet Group, the issuer of the popular stablecoin USDC, made its debut on the New York Stock Exchange (NYSE) under the ticker CRCL. Shares opened at $69—more than doubling their $31 IPO price—and surged as high as $103.75 during the session, a remarkable 234% increase. By the end of the first trading day, shares settled at $83.23, marking a 168% gain and raising $1.1 billion for the company.
The frenzy continued on June 6, with Circle’s stock reaching a high of $123.51—just shy of quadrupling its IPO price—before closing just under $120, up 44% from the previous day’s close. Trading was halted multiple times due to rapid price swings, reflecting overwhelming investor demand for a piece of the stablecoin market.
A Watershed Moment for Crypto
Circle’s IPO, the largest crypto listing since Coinbase’s 2021 debut, has been hailed as a turning point for the industry. Bitwise’s Juan Leon described it as a “moon landing” moment for stablecoins, signaling Wall Street’s growing acceptance of decentralized assets, as reported by Decrypt. Stablecoins like USDC, which are pegged to the U.S. dollar, play a critical role in DeFi by providing a stable bridge between traditional finance and cryptocurrencies such as Bitcoin and Ethereum. “Public markets have accepted that crypto is not going away,” said Jacob Zuller, an analyst at Third Bridge, reflecting the broader sentiment.
The IPO’s success comes amid a favorable climate for crypto, bolstered by the Trump administration’s supportive stance on digital assets. Posts on X captured the excitement, with one user noting, “the
@circle IPO is hands-down one of the most important events in crypto history” . However, not all reactions were positive—Arca Chief Investment Officer Jeff Dorman criticized Circle for allocating his firm only $135,000 of the IPO despite being an early backer.
Financials Under the Microscope
Despite the hype, Circle’s financials reveal potential vulnerabilities. In 2024, the company reported revenue of $1.7 billion, net income of $155.7 million, and Adjusted EBITDA of $284.9 million. For Q1 2025, those figures were $578.6 million, $64.8 million, and $122.4 million, respectively, according to Yahoo Finance. Notably, 99% of Circle’s revenue comes from interest income, raising concerns about its long-term sustainability. “When rates drop (which they will), Circle’s revenues will fall massively,” warned an analyst on Decrypt.
A Costly Underpricing
Circle’s debut also exposed the inequities of Wall Street’s IPO process. The company left $1.72 billion on the table due to underpricing, the seventh-largest shortfall since 1980, according to Jay Ritter, a professor at the University of Florida. This amount, which went to first-day gains for Wall Street insiders, was nearly double the $849 million in cash Circle held before the IPO. “Traditionally, IPOs are a great deal for Wall Street and its prized clients, not so much for the companies the investment banks take public,” Ritter told Fortune Yahoo Finance.
Stablecoin Market Growth
Circle’s success reflects the rising demand for stablecoins in 2025. The table below highlights the growth of USDC’s market capitalization compared to its competitor, Tether (USDT), based on historical trends in the stablecoin sector:
Stablecoin Market Cap (June 2024) Market Cap (June 2025) Growth Rate USDC $32.2B $45.8B (estimated) ~42% USDT $112.5B $150.3B (estimated) ~33%
Note: 2025 figures are estimated based on historical growth trends reported by CoinMarketCap and industry analyses.
This growth underscores why investors are betting big on Circle. Stablecoins are increasingly seen as a multi-trillion-dollar opportunity, with Wall Street expecting them to become a cornerstone of global finance.
What’s Next for Circle?
With $1.1 billion in fresh capital, Circle is poised to expand USDC’s reach, forge new partnerships with financial institutions, and potentially launch innovative products. The company also announced the Circle Payment Network, a regulatory framework designed to make traditional players more comfortable with stablecoins. However, investors are cautioned to tread carefully. Dom Kwok, co-founder of EasyA, advised waiting 90-180 days post-IPO to invest, citing the typical lockup period and price discovery phase.
Circle’s IPO marks a bold step forward for DeFi, proving that stablecoins can command Wall Street’s attention. But as the dust settles, the question remains: can Circle sustain its momentum in a volatile crypto landscape?
Infographic: Understanding Stablecoins and Circle’s Role
What Are Stablecoins? Stablecoins are cryptocurrencies pegged to a stable asset, like the U.S. dollar, to reduce volatility. They’re widely used in DeFi for trading, payments, and remittances.
Circle’s USDC USDC, issued by Circle, is the second-largest stablecoin by market cap. It’s fully backed by cash and equivalents, ensuring a 1:1 peg with the dollar.
Why It Matters Stablecoins bridge traditional finance and crypto, enabling fast, low-cost global transactions—key to DeFi’s growth and Circle’s Wall Street success.
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