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Shares in Circle Internet soared 168% on its debut in New York, marking a significant milestone for the stablecoin operator. The US group listed at $31 a share on the New York Stock Exchange, raising $1.1bn in response to strong investor demand. Trading was halted for volatility three times as the shares surged to $103.75 before closing at $83.23, giving Circle a market capitalization of almost $22bn.
Circle’s successful listing is a positive sign for the US IPO market, following a period of uncertainty due to President Trump’s tariff policies. Other companies like Chime Financial and Klarna are also eyeing listings in New York, signaling a potential resurgence in the market.
With the return of President Trump, who has pledged to support digital assets, Circle is well-positioned to capitalize on the growing interest in cryptocurrencies. The US government is close to finalizing regulations for stablecoins, which could significantly expand the market and attract more financial institutions.
Analysts predict that the global stablecoin market could reach $2tn in the coming years, drawing in banks and other players. Circle’s USDC, with $61bn in circulation, is second only to Tether in terms of market share.
Despite the potential growth, stablecoins have also come under scrutiny for their role in illicit transactions. Chainalysis estimates that 63% of last year’s $51bn in illicit crypto transactions involved stablecoins.
Circle’s revenue primarily comes from the US Treasuries backing its stablecoin, held in a BlackRock-run money market fund. While the company earned $1.66bn from these reserves last year, it also paid out significant fees and transaction costs to incentivize adoption.
CEO Jeremy Allaire is optimistic about Circle’s future, citing the company’s global network and regulatory licenses as key advantages. Circle has overcome challenges in the past, including a crisis in 2023 when its reserves were trapped in a failed bank.
Overall, Circle’s successful IPO and strong market performance indicate a growing acceptance of digital assets in the financial industry. As the regulatory landscape evolves and interest in cryptocurrencies grows, Circle is well-positioned to capitalize on these opportunities.
