USDC's second-largest stablecoin issuer Circle went public on the New York Stock Exchange, becoming the first successful stablecoin company to list, attracting global attention. Today, our team will briefly discuss the potential impacts this event might have on the stablecoin track and the entire crypto ecosystem.
01 Circle Rings the Bell at NYSE
Circle, the issuer of the world's second-largest USD-pegged stablecoin USDC, officially listed on the New York Stock Exchange on June 5th with the stock ticker "CRCL". This is the first IPO in the stablecoin field, and its successful listing may signify that the stablecoin business model has gained recognition from traditional capital markets.
Founded in 2013, Circle is a US-based fintech company with USDC as its core product. The stablecoin is pegged 1:1 to the US dollar and is used globally for payments, settlements, and digital dollar value storage, with market share second only to Tether's USDT. In April, Circle applied to the SEC for listing on the NYSE, appointing top investment banks like JPMorgan and Citigroup as underwriters. According to the updated filing submitted to the SEC on June 2nd, the company plans to issue 32 million Class A common shares with a price range of $27-28, potentially raising up to $896 million, with an issuance market value close to $6.2 billion.
This is Circle's second IPO, with the actual issuance valuation of around $7.2 billion lower than the initial SPAC valuation of $9 billion, fully demonstrating the market's perception of its actual value. The successful listing is also associated with the crypto asset bull market and a shift in US regulatory strategies. A series of crypto-friendly policies from the new US government have greatly supported market development and created a better operating environment for companies like Circle in the crypto track.
02 What Does the Second-Largest Stablecoin's Listing Mean?
In our view, Circle's NYSE listing is a milestone of deep collaboration between the crypto asset industry and traditional finance, and a significant victory for Circle in laying out financial infrastructure. One of Circle's purposes in going public is to leverage the SEC's information disclosure system to establish strong public trust, capture global stablecoin market share, and lay the groundwork for future global financial discourse and increase licensing opportunities across jurisdictions. Expanding capital scale and further expanding business scope are also key objectives.
We believe that as one of the top players in the stablecoin track, Circle has significant development potential after its successful listing. If it maintains strong compliance (especially in information disclosure) and allows public oversight through independent third-party audit institutions, it could become one of the most compliant and safest companies in the stablecoin track, greatly helping to build public confidence.
Regarding business risks, Circle's business model is quite simple: the company issues USDC stablecoins pegged 1:1 to the US dollar and directly invests the $60 billion in user deposits into short-term US Treasury bonds, earning risk-free income. This "passive income" model generated approximately $1.6 billion in interest revenue for Circle in 2024, accounting for 99% of its total revenue. While this model aligns with the stablecoin track's requirement for "safe and stable" assets, Circle's biggest risk stems from its single business model, which is entirely dependent on the stability and healthy development of a specific country's financial monetary system. If a country significantly reduces interest rates, Circle's profits would correspondingly drop dramatically.
Additionally, we've noted that Circle's net profit dropped from $268 million to $156 million in 2024, which might be related to its business collaboration with shareholder Coinbase. Currently, this situation requires attention, and it's difficult to determine whether it represents a "risk" that needs to be cautioned against.
03 What Can We Learn from the "Second-Place" in the Stablecoin Track?
First, Circle's listing is a major positive for the stablecoin field and even the entire crypto industry, signifying traditional financial markets' acceptance of the crypto market and a significant shift in US regulatory attitudes towards the crypto industry, releasing positive signals.
Secondly, regarding the subsequent development of stablecoins, our team believes thatcompliance and public trust remain the lifeline for stablecoin industry practitioners. For example, the current market leader, a certain company, suffered significant losses in the European market by refusing to fully disclose asset reserve situations, failing to obtain EU market licenses and creating negative market impacts. With Circle seizing the listing opportunity, it can be anticipated that this company's market share might be further eroded.
04 In Conclusion
As stablecoins begin ringing the bell on the NYSE, we see not just a company's successful breakthrough, but the entire industry's evolution. For investors, focusing on reserve transparency is more important than chasing short-term gains; for practitioners, now is a golden window to reconstruct the industry's trust system. After all, in this rapidly changing battlefield, surviving is always more valuable than running fast.
Therefore, for stablecoin deployment institutions, our team recommends thatregardless of IPO plans, compliance and information disclosure must be work priorities, as winning public trust is the most critical factor determining a company's survival.
