Jessy, Jinse Finance
On June 2nd Eastern Time, stablecoin giant Circle submitted an updated S-1 filing to the SEC, with significant adjustments to its listing plan: the fundraising target was dramatically increased from $100 million to $175 million, while the valuation shrank from $9 billion to $7.9 billion, a reduction of approximately 11%. Meanwhile, the company plans to issue more stocks.
The valuation reduction and increased fundraising are not just a compromise to the current capital and policy environment. Reducing the valuation can enhance stock attractiveness and reflects the current trend in both primary and secondary markets related to crypto in traditional financial markets.
Not only is Circle recently pushing for an IPO, but stocks related to stablecoins and crypto in both US and Hong Kong stocks have seen rises, with policy arbitrage stocks in Hong Kong showing considerable gains. For instance, Zhongan Online rose nearly 20% in the past three days, BC Technology Group (parent of compliant exchange OSL) rose over 40% in three days, Coinbase (holding Circle shares) rose nearly 10% in three days, and China Everbright, another major Circle shareholder, rose over 20% on June 3rd.
The comprehensive bloom of crypto-related stocks in US and Hong Kong markets is closely related to crypto policy advancements in the US and Hong Kong.
Dissecting Circle's Prospectus
Currently holding the second position in stablecoins, according to Circle's latest IPO file (June 2025 revised S-1), based on 2024 data, Circle's revenue is divided into three parts: first, USDC reserve interest, specifically $32 billion reserve fund invested in US Treasury repo agreements with an annual yield of 4.5%, accounting for 86% of revenue; second, trading and custody service fees, specifically exchange fees and custody fees for institutional clients trading cryptocurrencies, accounting for 9%; third, a share of on-chain interaction gas fees paid by developers, accounting for 5%.
The key growth in 2024 revenue came from a significant increase in institutional clients, with the number rising 82% year-on-year, including clients like Visa and BlackRock.
This valuation reduction and additional fundraising is both a compromise to reality and a preparation for future development. According to the latest IPO file, the main uses of fundraising are: 35% for compliance license applications, 30% for reserves, 20% for cross-chain protocol development, with the remainder as acquisition reserves.
The IPO file also discloses potential risks, including key policy risks: if the US determines stablecoin issuance is a banking-exclusive business, Circle would need to sell or shut down within two years; if Hong Kong, Singapore, and other locations require local reserves, global operational costs would surge.
Concentrated Release of Stablecoin-Related Policies
Circle's IPO and the significant rise in crypto-concept stocks in US and Hong Kong markets are inseparably linked to policies in both regions.
On May 19th, 2025, the US Senate passed the procedural vote for the "Guiding and Establishing National Innovation for U.S. Stablecoins Act" (GENIUS Act) with 66 votes in favor and 32 against, marking a milestone towards the first federal stablecoin regulatory framework in the US.
Two days later, on May 21st, the Hong Kong Legislative Council passed the "Stablecoin Ordinance Draft", marking a significant breakthrough in stablecoin regulation. According to the Hong Kong government, the ordinance is expected to take effect this year.
On June 1st, the US House of Representatives passed the "Stablecoin Payment Act", requiring stablecoin issuers to hold bank or state money transfer licenses, with reserve assets being 100% cash + Treasury bonds.
The GENIUS Act explicitly prohibits algorithmic stablecoins, effectively issuing an exclusive license for asset-backed stablecoins.
As the issuer of USDC, Circle has always used a reserve model similar to the 100% cash + Treasury bonds requirement, needing no major business model changes to comply with new regulations. The passage of the Stablecoin Payment Act effectively elevates the "Circle model" to an industry standard.
The passage of these two acts is a major positive for Circle's development. Beyond confirming regulatory legitimacy, these acts have cleared obstacles for traditional financial institutions to participate in the stablecoin market. USDC may become the preferred collaboration partner for banks and securities firms, attracting more institutional funds.
The latest IPO file reveals this, showing a significant increase in Circle's institutional clients in 2024.
With Hong Kong's policies following suit, and the dual overlay of US regulatory breakthroughs and Hong Kong's institutional dividends, related crypto policy stocks in Hong Kong have seen considerable rises. Although many rising stocks are policy arbitrage markers, as US and Hong Kong crypto policies gradually clarify and improve, more crypto companies like Circle are seeking IPOs.
Beyond Circle's Listing, Who Else is Actively Pursuing IPO?
In Hong Kong, licensed exchange OSL Group plans to be spun off from BC Technology, submitting an application in April 2025 with plans to raise $3-5 million. Hashkey Exchange reportedly secretly filed in May 2025, targeting Q4 listing. Both institutions have submitted A1 applications and are currently under Hong Kong Exchange review.
Market makers Amber Group and security company Certik have also declared Hong Kong IPO intentions and are in preparation stages.
After compliant exchanges fired the first shot in crypto Hong Kong listings this year, more crypto-related companies are expected to file densely.
In the US market, things are even more active. According to SEC public documents and market intelligence, as of June 2025, besides Circle, the following companies are accelerating IPO processes:
First, veteran exchange Kraken secretly filed an F-1 in May 2025, planning a direct NYSE listing, expected to be listed in Q1 2026. European veteran exchange Bitstamp is accelerating listing through SPAC merger. On-chain analysis leader Chainalysis submitted the latest S-1 to SEC in May 2025. In mining stocks, Core Scientific returned to US stocks with a new S-1 in March 2025 after bankruptcy restructuring, with ticker CORZ.
These crypto companies accessing capital markets through IPO or backdoor listings demonstrate the industry moving from the margins to the mainstream. They have developed certain capabilities in business models, market scale, and industry standards, enabling competition for capital market resources with traditional industry enterprises. This is inseparable from gradually clarifying regulations, which expanded these companies' development boundaries. With listing, they will obtain more funds for business development, something the industry can collectively anticipate.
