Shares of Circle, the issuer of the USDC stablecoin, reached a record high, surpassing $298 on Monday, despite the broader market's concerns over escalating geopolitical tensions between the US and Iran. Notably, Circle's market capitalization has for the first time exceeded that of its own stablecoin.
Surpassing USDC's market cap and breaking out in the market
Circle (#CRCL ), recently listed on the New York Stock Exchange (NYSE) just seven trading days prior (June 13), at one point rose by up to 24% compared to Friday's closing price of $240.28. The company's intraday market capitalization reached nearly $63 billion, surpassing the current market capitalization of its flagship stablecoin, USDC, which is around $61.3 billion.
These impressive gains come amid broader market concerns over rising geopolitical tensions between the US and Iran. Many investors seem to be seeking safe havens and moving away from riskier assets – like stocks and cryptocurrencies – in an unstable wait-and-see state. The Nasdaq Composite index has declined, while the S&P 500 has increased.
Strategic partners driving Circle's growth
Circle could also benefit from news from Fiserv, a publicly traded company on the NYSE. This S&P 500 company has partnered with PayPal to build a stablecoin payment network, potentially reaching 3,000 regional bank customers and their communities.
A separate press release from Circle also stated that the infrastructure being built will also benefit USDC. This partnership will "equip banks and fintech companies to leverage Fiserv's digital asset platform and branded stablecoin with seamless access to digital dollar infrastructure, enhancing payment experiences, real-time payments, and expanding global reach," the company said.
Jeremy Allaire, President and CEO of Circle, commented: “As the demand for borderless, real-time financial experiences accelerates, this collaboration reflects our commitment to supporting progressive-minded financial institutions.” This indicates that the strategy of expanding into traditional financial services is a major driver of Circle's growth, even amid a volatile crypto market. #anhbacong