June 27 - Circle Internet Group (CRCL, Financial) resumed its upward momentum Thursday, climbing about 8% by late afternoon, after retreating 15% earlier in the week. The move follows heightened post-IPO volatility and investor reactions to regulatory uncertainty and macroeconomic signals.
Circle, which debuted on June 5, has surged more than 600% since listing, making it one of the most closely watched crypto-related stocks. The company is best known as the issuer of USDC, a leading stablecoin backed by cash and short-term Treasuries.
Meanwhile, Coinbase (COIN, Financial), which acts as the primary distribution platform for USDC, rose more than 5% on Thursday. Coinbase benefits directly from Circle's business model, receiving 50% of the revenue generated from interest on USDC reserves and full interest income on USDC held on its own platform.
Market participants are also keeping an eye on interest rate signals from the Federal Reserve. Any rate cuts could potentially reduce Circle's earnings from its interest-bearing reserves. Investors are also watching the legislative progress of the GENIUS Act, a stablecoin regulation bill that recently cleared the Senate and now moves to the House.
Coinbase is on pace for a 52% monthly gain, its best since November, while Circle's IPO rally continues to attract attention. Investors appear to be repositioning based on perceived synergies between the two companies as stablecoin adoption expands.
