The sharp rise in Circle's stock price is mainly due to the following reasons:

Favorable Regulatory Policies

The U.S. Senate passed the "GENIUS Act," which is the first federal-level regulatory framework for stablecoins. This bill defines stablecoins as "digital cash," requiring a 100% reserve of highly liquid assets and clarifying their role as payment tools, marking the first time that crypto assets have been incorporated into the traditional financial system. Circle, with up to 99.5% of its USDC reserves in U.S. Treasury and cash, leads in the compliance race and becomes the biggest beneficiary.

Strong Market Demand and Business Prospects

Stablecoins have tremendous potential in areas such as cross-border payments and digital payments. The USDC issued by Circle enables the digitization of the dollar, bringing transformation to payment and settlement processes in the financial industry. It can be used for daily payments, cross-border settlements, and can also reduce costs and improve efficiency in cross-border payments. Its blockchain cross-border payment network, CPN, can achieve settlement in seconds, with transaction fees as low as 0.01%, making its business prospects favorable in the market.

Positive Investor Expectations

On one hand, publicly traded stablecoin companies are scarce, and Circle, as the "first stock of stablecoins," has unique investment value. On the other hand, Wall Street institutions, including JPMorgan Chase and Goldman Sachs, are participating in Circle's underwriting, which may integrate USDC into existing systems. This enhances investor confidence and expectations for Circle.

Industry Development Trends

Stablecoins are no longer toys for the "crypto circle" but have become new foundational payment infrastructures that tech giants are vying to establish. With the development of the cryptocurrency market, stablecoins serve as a bridge between digital assets and traditional finance, with increasing demand driving the rise in Circle's stock price. #稳定币 #稳定币 Synthetic Assets Decentralized Finance Blockchain Crypto News