- Circle becomes first publicly-traded stablecoin company, raising $1.1 billion IPO with $6.9 billion valuation.
- BlackRock leads institutional investment; USDC emerges as core settlement infrastructure for tokenized assets.
- Global regulatory tightening reshapes competition; compliance advantages become key differentiator for stablecoins.
Welcome to CoinRank Daily Data Report. In this column series, CoinRank will provide important daily cryptocurrency data news, allowing readers to quickly understand the latest developments in the cryptocurrency market.
EVENT OVERVIEW
On June 5, 2025, Circle Internet Group (stock code CRCL), the issuer of the world’s second-largest stablecoin USDC, officially listed on the New York Stock Exchange, becoming the first compliant stablecoin operator to complete a public listing. The IPO was priced at $31 per share, far exceeding the previous expected range of $24-26, with a total fundraising scale of $1.1 billion and the company’s valuation rising to $6.9 billion. The underwriting team was led by three top-tier investment banks—JPMorgan Chase, Citigroup, and Goldman Sachs. Institutional subscription demand exceeded the issuance volume by 25 times, setting a new record for subscription scale in a crypto company’s IPO.
MARKET REACTION AND INSTITUTIONAL MOVEMENTS
Over-subscription and Capital Allocation
The IPO originally planned to issue 24 million shares but was expanded to 34 million shares due to strong institutional demand. BlackRock subscribed for 10% of the IPO shares with $340 million and deeply integrated with the USDC ecosystem: its money market fund holds 90% of USDC reserves (approximately $53.3 billion), and it has connected the settlement channel of its tokenized U.S. Treasury bond fund BUIDL to USDC. ARK Invest (a fund under Cathie Wood) heavily bet $150 million on regulatory arbitrage opportunities following the passage of the GENIUS Act.
Early investors show signs of divergence
Coinbase, as a co-issuer of USDC, cashed out $595 million by selling 19.2 million shares, reflecting some early capital’s cautious attitude toward regulatory risks. The entry of traditional financial institutions, however, marks the mainstream recognition of stablecoins as the “digital dollar infrastructure” with long-term value.
INDUSTRY IMPACT: COMPLIANCE AND ECOSYSTEM RECONSTRUCTION
Acceleration of RWA (Real-World Asset Tokenization)
USDC has evolved from an exchange settlement tool into the core pipeline for real-world asset tokenization. BlackRock’s $380 million U.S. Treasury tokenization fund BUIDL uses USDC as the underlying settlement medium, and the Hong Kong cross-border energy digitization project also selected USDC for on-chain settlement. Institutions predict that the annual on-chain settlement volume supported by USDC will exceed $2 trillion, driving a 30% improvement in cross-border trade efficiency.
Regulatory Framework Reshapes Competitive Landscape
Global regulatory tightening is accelerating industry consolidation. The US GENIUS Act requires 100% cash or short-term Treasury reserves, the EU MiCA regulation mandates a 30%-60% bank deposit ratio, and Hong Kong’s Stablecoin Ordinance establishes a licensing management system. In this context, USDC, with its transparent reserve structure of 80% short-term US Treasury bonds and 20% bank cash, saw its market share rebound from 35% in 2022 to 29%, with its compliance advantages continuing to stand out.
CIRCLE’S DECADE-LONG COMPLIANCE JOURNEY
Four Stages of Strategic Transformation
- Payment Exploration Phase (2013-2016): Entered the cross-border payment market as a “Bitcoin-based PayPal,” but faced obstacles due to Bitcoin’s volatility;
- Stablecoin Rise (2018-2023): Collaborated with Coinbase to launch USDC, overtaking USDT in reserve transparency;
- Crisis Catalyst (2023): The Silicon Valley Bank incident led to the freezing of $3.3 billion in reserves, accelerating the divestment of risky businesses and the introduction of BlackRock to manage reserves;
- Capitalization Finale (2024-2025): Focusing on USDC interest income (accounting for 99% of revenue), Circle aims to enter the capital market with annual revenue of $1.68 billion.
CHALLENGES AND RISKS
Concerns Over Profit Volatility
Circle derives 99% of its revenue from US Treasury interest. In 2024, due to expectations of the Federal Reserve cutting interest rates, net profit plummeted 42% year-on-year to $156 million. If interest rates continue to decline, its “risk-free arbitrage” model will face pressure.
Unresolved Regulatory Classification
The SEC is studying whether to classify USDC as a security; if approved, Circle would need to restructure its business model. The EU’s MiCA regulation could further reduce profit margins by 15%. Additionally, USDC’s market share remains significantly behind USDT (70%), and Circle must overcome barriers to user acquisition in emerging markets.
CONCLUSION: A PIVOTAL MOMENT FOR CRYPTO FINANCE
Circle’s IPO marks the transition of stablecoins from “gray-area tools” to “financial infrastructure.” As traditional capital and regulatory frameworks interpenetrate, the core of industry competition has shifted from technological innovation to compliance capabilities. Breakthroughs in RWA and cross-border payment scenarios may redefine the global asset liquidity and monetary system landscape.
〈CoinRank Daily Data Report (6/5)｜Circle, the First Stablecoin Company, Listed on the NYSE: A Milestone in the Compliance Process〉這篇文章最早發佈於《CoinRank》。
