The US-based issuer of one of the most renowned cryptocurrencies made its inaugural appearance on the New York Stock Exchange on Thursday, witnessing a rapid increase in value driven by significant interest from crypto enthusiasts and investors.
Circle Internet Group is the issuer of USDC, a stablecoin that trades at a 1:1 ratio with the US dollar, along with an EURC that operates similarly with the euro.
Stablecoins represent a rapidly expanding sector in the cryptocurrency industry, offering a safeguard against volatility through their alignment with real-world assets like the US dollar and gold. This stability allows for more reliable commercial transactions compared to other crypto forms.
Interest in Circle’s initial public offering (IPO) is on the rise. The company’s underwriters set a share price of $31 on Wednesday, up from the anticipated range of $27 to $28. The number of shares available for sale has been increased from 32 million to 34 million. Circle is listed on the NYSE under the ticker symbol “CRCL”.
The share price soared past $96 at one point on Thursday afternoon, ultimately closing at $83.23. Circle’s IPO is among the largest public listings of crypto-related companies since Coinbase’s debut in 2021.
Tether, headquartered in El Salvador, is the dominant player in the stablecoin market. Its stablecoin, USDT, has approximately $150 billion in circulation. USDC is the second most popular stablecoin, boasting a market capitalization of around $600 billion.
In a regulatory filing, Circle indicated that USDC has facilitated “$25 trillion in on-chain transactions” since its inception in 2018.
Regarding revenue, the company has seen growth from $15 million in 2020 to a projected $1.7 billion in 2024.
Stablecoin issuers generate profits by accruing interest on the assets backing their stablecoins. Circle noted that USDC is underpinned by “cash, short-term US Treasury assets, and overnight repurchase agreements with major US Treasury banks.”
Circle’s IPO occurs in a climate where the Trump administration and the crypto sector are advocating for legislation to regulate stablecoin issuers in the United States. Advanced bipartisan support was received last month.
Additionally, competition is intensifying within the stablecoin market. A crypto company partially owned by the Trump family has introduced its own stablecoin, USD1.
With a long track record of success, Circle’s mission statement emphasizes “increasing global economic prosperity through frictionless value exchange.”
Source: apnews.com