Circle (CRCL, Financial), known as the "first stablecoin stock," made a strong debut on the New York Stock Exchange. Initially priced at $31 per share, Circle's stock surged over 168%, closing at $83.23 with a market cap exceeding $18 billion. The trading volume reached approximately 47 million shares, significantly surpassing the available free-floating shares.
Circle is the second-largest issuer of stablecoins pegged to the US dollar, specifically USDC. Before its IPO, Circle's stock was oversubscribed by more than 20 times, and the company expanded its offering to 34 million shares to raise nearly $1.1 billion, surpassing the initial target of $624 million.
Stablecoins serve as a crucial bridge between fiat and digital currencies, initially used for crypto transactions but now also for cross-border payments. USDC and USDT dominate the market, with a combined market share exceeding 90%. As of June 2025, the global stablecoin market is valued at $251.1 billion.
Circle's compliance advantage over Tether, the issuer of USDT, lies in its reserve assets, which include cash and short-term government bonds, meeting new U.S. regulations for "high-quality liquid assets."
Circle's revenue is primarily driven by reserve interest, with distribution and transaction fees being major costs. The company’s financial growth reflects the expanding stablecoin industry, supported by collaborations with major exchanges like Coinbase.
