What happened?
Stablecoin giant Circle's stock price skyrocketed by 168% on its first day on the New York Stock Exchange, successfully raising nearly $1.1 billion, demonstrating the market's strong confidence in the company and its core product, the USDC stablecoin. This is not only a significant victory for Circle but also indicates that under the backdrop of a friendlier attitude from the U.S. government towards cryptocurrencies, the stablecoin industry is entering a golden period of rapid development, with analysts even predicting a tenfold growth in the next five years.
Currently, USDC is the second largest stablecoin by market capitalization, second only to Tether's USDT, but its issuer Circle and strategic partner Coinbase hold high ambitions for its future. Coinbase's CEO has clearly stated that their 'lofty goal is to make USDC the largest stablecoin', highlighting the determination of both companies to expand the market together.
Circle's successful IPO is not accidental; its co-founder and CEO emphasizes the company's long-standing commitment to regulatory compliance. As stablecoins gradually gain recognition as viable financial instruments by banks and payment companies, and receive more attention at the government level, Circle's IPO sets an important milestone for the integration of the cryptocurrency industry into the mainstream financial system.
Stablecoin Circle makes a strong debut
Stablecoin issuer Circle Internet Group recently went public on the New York Stock Exchange (NYSE) with the stock code CRCL. The first day trading was impressive, with the stock price soaring by 168%. This is not only an important milestone for Circle but also reflects the growing market interest in stablecoin businesses and the increasing political support for the cryptocurrency industry in the United States.
Circle successfully raised nearly $1.1 billion in this IPO. The company priced its stock at $31 per share, significantly higher than the expected range of $27 to $28 earlier this week, and the initial range of $24 to $26 from last week.
Circle's stock price surged on the first day of trading, reflecting the market's high enthusiasm and strong demand for the company. The opening price was $69, peaking at $103.75 during the day, and closing at $83.23, up 168.48% from the IPO price. The trading volume for the day was approximately 46 million shares, far exceeding the number of freely tradable shares.
Before this successful IPO, Circle had attempted to go public once through a Special Purpose Acquisition Company (SPAC) but ultimately failed due to regulatory issues. This successful IPO not only considers the current market capitalization (approximately $6.8 billion) but also the potential future market cap (approximately $22.1 billion) after possible share conversions, indicating the market's high expectations for its future growth and implying potential dilution risks.
USDC firmly sits as the second largest stablecoin, aiming to surpass USDT.
Circle's co-founder and CEO Jeremy Allaire stated that to realize the company's vision, they have established relationships with governments and policymakers around the world, as stablecoins must operate within mainstream society and require clear rules to become mainstream.
He emphasized that Circle has always been one of the most licensed, regulated, compliant, and transparent companies in the industry.
In the current environment of a friendly attitude from the U.S. government towards cryptocurrencies, the cryptocurrency industry is enjoying new political advantages. Especially in the stablecoin sector, demand is increasing in anticipation of Congress passing stablecoin legislation this summer. Wall Street analysts expect the stablecoin market to grow tenfold in the next five years, creating a trillion-dollar market opportunity.
Circle was founded in 2013 in Boston, initially providing services for consumer payments, cryptocurrency wallets, and trading, and became one of the first companies to obtain the New York State BitLicense in 2015.
💡 'BitLicense': A license and regulatory framework launched by the New York State Department of Financial Services (NYDFS) in 2015 for cryptocurrency business activities. In short, it is an operating license that New York State requires all companies conducting virtual currency-related businesses in the state to obtain.
Circle collaborated with Coinbase in 2018 to launch the USDC stablecoin pegged to the U.S. dollar through the Centre Consortium. In 2023, they dissolved Centre, with Circle assuming responsibility for USDC, while Coinbase acquired a minority stake in Circle. The two companies also signed a revenue-sharing agreement for the USDC stablecoin, with Coinbase CEO Brian Armstrong stating that their 'lofty goal is to make USDC the largest stablecoin.'
💡 Centre Consortium: An independent entity or alliance jointly established by Circle and Coinbase in 2018. The initial vision was for Centre to oversee the governance, technical standards, and transparency of USDC, ensuring compliance with its dollar reserves and allowing more participants to issue USDC to promote broader adoption, with the aim of becoming an open, non-profit stablecoin standard setter.
Circle's compliance journey and industry development trends
Currently, USDC is the second largest stablecoin in the market, second only to Tether's USDT.
As of June 3, 2025, USDC's market capitalization has grown by over 40% from the beginning of the year, reaching $61.5 billion and surpassing $62 billion in April. In contrast, Tether's USDT has a market capitalization of approximately $153.9 billion.
The value of stablecoins is typically pegged to another asset (usually the U.S. dollar). In the past, they served primarily as a bridge currency for traders between fiat and cryptocurrencies. Now, with the Trump administration reversing the cryptocurrency policies of the Biden era and the expected formulation and passage of related regulations, banks and payment companies are increasingly interested in stablecoins.
In addition to cryptocurrency trading, the efficiency and lower costs that stablecoins bring to remittances, business-to-business payments, and e-commerce have also attracted interest from non-traditional cryptocurrency users. At the same time, the argument about stablecoins maintaining the U.S. dollar's dominance is becoming increasingly louder, partly because nearly all dollar-denominated stablecoins are backed by U.S. government debt, ensuring demand for U.S. government debt.
The Circle IPO has received enthusiastic support from investors, with oversubscription. Reports indicate that BlackRock, the world's largest asset management company, has also expressed interest in acquiring 10% of the IPO shares, while Cathie Wood's ARK Investment is said to be interested in purchasing $150 million worth of Circle stock.
Circle's CEO Allaire announced on X that the company's listing on the New York Stock Exchange is 'an important and powerful milestone' and believes 'the world is ready to start upgrading and transitioning to an online financial system.'
References: cointelegraph, cointelegraph, cnbc
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