Circle IPO aims for a valuation of $5 billion. Is there a stablecoin concept stock?-web3资讯-ODAILY

On March 31, 2025, the cryptocurrency industry received a big piece of news. According to Fortune magazine, Circle, the issuer of the USDC stablecoin, is pushing forward its IPO plan in full swing. It has hired JPMorgan Chase and Citibank as underwriters and is expected to formally submit public offering documents at the end of April. The target valuation is set at between 4 billion and 5 billion US dollars, which has once again focused the markets attention on the recent popular stablecoin track.

Circle IPO makes a comeback

In fact, this is not Circles first IPO plan. As early as 2018, Circle had shown interest in the public market. At that time, Circle quickly emerged by acquiring the crypto exchange Poloniex and launching USDC. In the same year, Circle announced that it had received $110 million in financing, led by Bitmain, and followed by IDG Capital, Breyer Capital and other old shareholders, with a valuation of $3 billion. This round of financing may be a signal that Circle is paving the way for a future IPO, but the brutal bear market in the crypto market and the 75% drop in Circles valuation in early 2019 have prevented the IPO plan from being put on the agenda.

What really brought Circle close to the public market was the SPAC (special purpose acquisition company) in 2021. In July 2021, Circle announced its merger with special purpose acquisition company Concord Acquisition Corp. However, Circle soon encountered a regulatory cold wave. The US SEC has stepped up its review of SPAC transactions, requiring stricter financial disclosures and compliance measures. In December 2022, Circles transaction with Concord fell through due to failure to obtain SEC approval, and the company publicly stated that it would terminate the SPAC plan. In the three years since then, Circle has focused on improving the compliance and market penetration of USDC, such as working with Visa to expand payment scenarios and applying for regulatory licenses worldwide.

To understand Circles IPO plan, we have to mention the successful experience of its partner Coinbase. On April 14, 2021, Coinbase landed on Nasdaq and became the first large-scale cryptocurrency exchange to be publicly listed in the United States. The stock price rose from US$250 to US$328.28 at the opening of the listing, and rose to a high of US$429 during the trading session, with a market value of up to US$64.5 billion. Coinbase CEO Brian Armstrong once said that he hopes USDC will become the worlds largest stablecoin. If Circles IPO is successful, it will not only inject funds and resources into this goal, but may also further consolidate the strategic alliance between the two companies.

The relationship between Coinbase and Circle is more than just a normal cooperation. In 2018, the two companies jointly launched USDC. As Circles core product, the issuance and management of USDC cannot be separated from the support of Coinbase, and Coinbase also vigorously promotes USDC through its platform. As of 2025, the market value of USDC has exceeded 60 billion US dollars, becoming the second largest stablecoin after Tether (USDT). Coinbase not only helps Circle in technology and market promotion, but also holds part of Circles equity. This close partnership adds more highlights to Circles IPO.

Circle IPO aims for a valuation of billion. Is there a stablecoin concept stock?

Circle and Tether: Rivals in the Stablecoin Market

In the stablecoin market, Circles USDC and Tethers USDT both regard each other as the top competitor. USDT is firmly in the top spot with a market value of about $140 billion, while USDC is closely behind with $60 billion. Although there is still a gap between the two in market share, Circle is gradually narrowing the gap with Tether with its compliance and transparency.

Since its launch in 2014, Tether has become the dominant stablecoin market with its first-mover advantage and wide application scenarios. However, Tethers rise has not been without controversy. The transparency of its reserve assets has always been the focus of regulators and investors. Although Tether claims that its USDT is fully backed by the US dollar or other equivalent assets 1: 1, the lack of multiple audit reports and doubts about its reserve composition have made it subject to criticism.

In contrast, Circle is at the forefront of compliance. Each USDC token is backed by audited U.S. dollar reserves, and Circle regularly publishes certification reports issued by top accounting firms. This transparency has not only won the favor of traditional financial institutions, but also made it an excellent student in the eyes of regulators. For example, Circle has obtained money transmission licenses in multiple states in the United States and chose France as its headquarters in Europe to layout the global market. In 2024, Circle also obtained regulatory approval to launch USDC in Japan, further expanding its international influence.

Circle IPO aims for a valuation of billion. Is there a stablecoin concept stock?

The profit logic of stablecoins is not complicated. Take Tether as an example. After users exchange US dollars for USDT, Tether invests these funds in low-risk assets such as US Treasury bonds and money market funds, earning interest differentials while maintaining the 1:1 anchoring of USDT and the US dollar. During the high interest rate cycle from 2022 to 2024, the yield on US Treasury bonds once exceeded 5%, bringing rich returns to Tether. In addition, Tether further increases its revenue by charging withdrawal fees and sharing with partners. Tether achieved a profit of up to US$13 billion in 2024, a figure that even exceeded the annual revenue of BlackRock, the worlds largest asset management company. This business model has almost no cost, but can continuously generate cash flow, and can be called a money printing machine in the digital age.

Circles USDC uses a similar profit model, but due to its smaller market capitalization, its revenue is naturally not as high as Tethers. However, Circles transparency and compliance have won it more institutional clients. For example, Visa and Mastercard have integrated USDC into their payment networks, and BlackRock also indirectly supports the application of USDC through its BUIDL fund. If Circles IPO can successfully raise billions of dollars in funds, it may accelerate its expansion in the institutional market and narrow the revenue gap with Tether.

Stablecoin bill adds fuel to the fire

Circles decision to push forward with its IPO this year is inseparable from the improvement of the external environment. Since Trump was elected, he has publicly supported the development of cryptocurrencies many times, promised to build the United States into a global crypto hub, and emphasized the dominance of the U.S. dollar in the digital economy. As an important carrier of the digitalization of the U.S. dollar, stablecoins naturally become a policy focus.

As of April 1, 2025, the US legislation process for stablecoins has accelerated, with the GENIUS Act and the STABLE Act attracting much attention. The GENIUS Act was proposed in 2024, requiring the reserve assets of stablecoin issuers to be 100% backed by cash or cash equivalents and subject to regular audits. It was passed by the Senate Banking Committee on March 13 this year with 18 votes in favor and 6 votes against, and is about to enter the Senate for a full vote. Bo Hines, executive director of the Presidential Digital Asset Advisory Committee, expects that it will be sent to Trump for signature as early as June; at the same time, the STABLE Act is steadily advancing in the House of Representatives and is scheduled to be marked and revised on April 2. The two houses are currently coordinating the details of the bill. The Trump administration has clearly supported it and promised to sign it into law quickly once it is passed. This progress provides policy benefits for compliant stablecoin companies such as Circle, and also marks that the US regulatory framework in the field of digital dollars is becoming increasingly clear.

In addition, the EUs MiCA regulations will be fully implemented in 2024, imposing higher transparency and capital requirements on stablecoin issuers. Circle took the lead in establishing its European headquarters in France, demonstrating its emphasis on global compliance. Countries such as Japan and the United Kingdom are also accelerating the formulation of stablecoin regulatory policies, providing clearer guidance for the development of the industry.

The implementation of the Stablecoin Act may have a profound impact on the market structure. For Circle, the success of the IPO will not only provide it with financial support, but may also promote the greater popularity of USDC in the compliant market. On the other hand, Tether faces greater regulatory pressure and needs to adjust its reserve structure and even sell some non-cash assets. It can be foreseen that with the clarification of the regulatory environment and the entry of institutional funds, the stablecoin market may usher in a new round of reshuffle, and Circles IPO may be an important catalyst in this process.

Cryptocurrency IPO process heats up

As stablecoin regulation becomes clearer, Circles IPO plan may just be a microcosm of traditional capital entering the crypto market. The policy push not only paves the way for stablecoin issuers such as Circle, but also opens the door to Wall Street for more crypto companies. At the end of last year, Bitwise predicted that there were five companies (including Circle) that might go public in 2025:

Circle: Issuer of the second largest stablecoin USDC.

Figure: The company, known for its blockchain-based financial services such as mortgages, personal loans, and asset tokenization, has been exploring an IPO since last year.

Kraken: The U.S.-based cryptocurrency exchange’s IPO plans date back to 2021.

· Anchorage Digital: Status as a federally chartered bank could pave the way for it to go public.

Chainalysis: A leader in blockchain compliance and intelligence services, expected to go public.

Additionally, Dragonfly’s Hadick said: “I expect the LP (limited partners of crypto venture capital institutions) market to get better and they will want to put more money into cryptocurrencies. Many traditional Web2 crossover funds will return to the Web3 field. We have already seen such trends in certain areas, such as stablecoins and payments.” He added that venture capital transactions tend to lag behind public market price increases by one or two quarters.

Circles IPO may become a weather vane for the development of the stablecoin industry. As the global regulatory environment gradually becomes clearer, stablecoins are ushering in a golden age of compliance and institutionalization. Can Circle take advantage of this opportunity to further challenge Tethers dominance? The answer will be revealed in the market performance after the IPO.