In April 2025, Circle, the issuer of USDC, submitted its IPO application to the US SEC for the third time with a proposed valuation of $5 billion to go public on the New York Stock Exchange, marking a significant event in the compliance process of the cryptocurrency industry. As the second largest stablecoin globally, USDC generates revenue by investing user reserves in U.S. Treasury bonds and money market funds, with reserve income reaching $1.67 billion in 2024, accounting for 99% of total revenue. Its business model is highly dependent on the interest rate environment, and a potential rate cut by the Federal Reserve could lead to a decline in annual income of over $400 million. Despite facing market pressure from Tether and regulatory uncertainties (such as the securities classification dispute), Circle is still regarded as a leader in the stablecoin space due to its compliance advantages (custody by BlackRock, regular audits) and partnerships with traditional institutions like Visa. This IPO may push stablecoins to become mainstream financial infrastructure, but risks from the interest rate cycle, competitive landscape, and policy changes must be heeded.

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