According to Golden Finance, Circle, a leading enterprise in the stablecoin field, has been continuously attracting the attention of investors in the US stock market. On June 9th, Circle’s pre-market gains on the US stock market exceeded 13%, continuing the strong upward trend of the previous trading day. The previous trading day, its closing gain was close to 30%.
On June 5th, Eastern Time of the United States, Circle was officially listed on the New York Stock Exchange with the stock code “CRCL”. On its first day of listing, Circle’s stock price demonstrated astonishing explosive growth. The opening price soared by 122.58% to $69, reaching a high of $103 during the trading session, with a maximum increase of 234.68%. Due to the excessive volatility of the price increase, a temporary circuit breaker was triggered during the trading session. Eventually, the company’s stock price closed at $83.23, with a single-day increase of 168.5%. The total market value has exceeded 18 billion US dollars.
Circle was founded in 2013. As the world’s second-largest issuer of USDC, a stablecoin pegged to the US dollar, its core product USDC is pegged 1:1 to the US dollar and is widely used in payment, settlement, and digital dollar value storage fields worldwide. At present, the circulation of USDC has reached 61 billion US dollars, accounting for 24.4% of the global stablecoin market share, second only to USDT.
Judging from Circle’s financial data, its revenue model is rather unique. The prospectus shows that of the company’s total revenue of 1.676 billion US dollars in 2024, 99% comes from the interest income generated by USDC reserve assets. In an environment where the Federal Reserve maintains high interest rates, the annualized yield of USDC reserves exceeds 5%, generating approximately 210 million US dollars in interest income for Circle in the first quarter of 2025 alone.
There are numerous reasons behind Circle’s outstanding performance in the US stock market this time. On the one hand, the regulatory environment for stablecoins in the United States has improved. The GENIUS Act has been passed by the Senate Banking Committee, providing clearer compliance guidance for the industry and enhancing investors’ confidence in the stablecoin sector. On the other hand, Circle’s own financial performance has continued to improve. In 2023, it achieved a net profit of 268 million US dollars, reversing the loss of 762 million US dollars in 2022. Meanwhile, Circle’s listing received support from top financial institutions and strong backing from cornerstone investors.
However, there are also some worried voices in the market. Some analyses point out that Circle is highly dependent on interest income, and its profit model is highly sensitive to the US policy interest rate. Once the Federal Reserve further cuts interest rates, Circle’s interest income may face significant downward pressure. Furthermore, as competition in the stablecoin market intensifies, the emergence of more stablecoins in the future may erode Circle’s market share.
Despite this, Circle’s listing marks that the stablecoin, a niche field of cryptocurrencies, has officially stepped onto the core stage of traditional capital markets and has also injected new vitality into the industry’s development. The subsequent performance of Circle in the US stock market and its impact on the stablecoin industry landscape deserve continuous attention from all market participants.
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