This Thursday (June 13), the U.S. dollar stablecoin USDC issuer Circle will go public on the NYSE under the stock code CRCL, seeking to raise a maximum of $896 million. On the eve of the listing, the stock price of China's Everbright Holdings surged 44% in five days, unexpectedly revealing Circle's eight-year secret relationship with Chinese capital.

One, The Chinese Capital Chess Game Behind Everbright's Surge

2016 was a key year for Chinese capital's deep involvement in Circle:

- IDG Capital continuously led the Series C and D rounds, with Baidu, Everbright Holdings, Wanxiang, and CICC collectively co-investing;

- IDG founder Xu Xiaoge bluntly stated: 'Investing in Circle is about bringing American technology back to China';

- Circle established a Chinese company 'Shike Technology', led by executives from the IDG system, but was unable to conduct business due to restrictions on third-party payment licenses, ultimately dissolving quietly in 2020.

Historical Interlude: In 2018, a company in A-shares faced inquiries from the Shenzhen Stock Exchange due to rumors of 'Circle's investment', forcing it to urgently clarify the situation.

Two, From 'American Alipay' to Desperate Survival: Three Life-or-Death Transformations

1. The Dream of Payment Shattered (2013-2016)

Founder Jeremy Allaire (a serial entrepreneur) entered through cross-border payments with Bitcoin, gaining backing from Goldman Sachs and IDG, but abandoned the payment business due to the Bitcoin scaling controversy.


2. Exchange Waterloo (2017-2019)

- $400 million acquisition of exchange Poloniex, with a valuation soaring to $3 billion;

- Faced with intense regulatory pressure from the U.S., the delisting of tokens led to a share price collapse (60% → 1%);

- Valuation shrank by 75%, layoffs of 30%, and ultimately sold Poloniex to an affiliate of Sun Yuchen, resulting in a loss of over $156 million.

3. All-In on USDC (2020-Present)

Divest all non-core businesses such as payment, OTC, and research, and fully focus on the stablecoin USDC, which currently has a circulation of $61 billion, ranking second in the world.


Three, The Hidden Worries and Opportunities Behind the IPO

▍Profit Model: Treasury Bond Arbitrage and Coinbase 'Bloodsucking'

- $1.6 billion in interest income in 2024 (accounting for 99% of total revenue), but net profit fell by 43% to $156 million;

- Key Conflict: The USDC held on the Coinbase platform (accounting for 23%) monopolizes all reserve earnings, eroding Circle's profits.

▍Policy Tailwind: Stablecoin Legislation Breakthrough

The U.S. (GENIUS Act) requires stablecoins to have 100% reserves + monthly audits + priority payment in bankruptcy; if passed:

- The compliance leader Circle is expected to crush competitors like Tether (USDT);

- Become an important driver of the U.S. dollar globalization strategy.

Conclusion

In eight years, Circle fell from a star payment company to the depths but revived against all odds with USDC. Its past in China reflects the ideals and realities of multinational cooperation in the crypto industry, and whether this IPO can help it break the 'Coinbase profit siphoning' dilemma and become a true 'dollar ambassador' remains to be seen in the capital markets.


Risk Warning:

This article only objectively states the corporate journey and does not constitute any investment advice. The risks of cryptocurrency and securities investment are extremely high, please make cautious decisions.