Circle's IPO to Bridge Finance and Crypto, Raise $6 Billion

Circle, a leading stablecoin issuer, is poised to make history with its upcoming Initial Public Offering (IPO) on the New York Stock Exchange (NYSE) on June 5. This event marks the first IPO in the stablecoin sector and is expected to accelerate the acceptance of stablecoins among traditional financial users, bridging the gap between conventional finance and the digital asset world.

Founded in 2013 by Jeremy Allaire and Sean Neville, Circle has been a pioneer in blockchain technology and stablecoins. In 2018, Circle, in collaboration with Coinbase, launched the Centre Consortium to introduce USD Coin (USDC), a stablecoin backed 1:1 by the US dollar. USDC was designed to be more compliant and transparent than its competitor, Tether's USDT. By 2025, USDC had grown to become the second-largest dollar-pegged stablecoin globally, with a market value of approximately 609 billion dollars, trailing only Tether's USDT.

The decision to go public was influenced by the 2023 Silicon Valley Bank crisis, during which Circle's 3.3 billion dollars held in the bank were temporarily frozen, causing USDC to lose its peg. This incident highlighted the need for Circle to enhance its regulatory compliance, transparency, and market stability. The company filed for the IPO with the US Securities and Exchange Commission on April 1, 2025, with top investment banks like JPMorgan and Citigroup acting as underwriters. Circle plans to issue 24 million shares, with 9.6 million new shares and 14.4 million shares from existing shareholders, at a price range of 24 to 26 dollars per share, aiming to raise 6 billion dollars. If successful, Circle's fully diluted market value could reach 62 billion dollars.

The IPO has garnered significant interest from institutional investors, including Cathie Wood's ARK Investment Management, which has expressed intent to purchase up to 1.5 billion dollars worth of shares. The successful listing of Circle is expected to further propel the development of the US stablecoin market and expedite the adoption of stablecoins by traditional financial users, particularly institutional investors. Stablecoins, which are digital currencies pegged to the value of a reserve asset like the US dollar, offer price stability and blockchain compatibility, making them ideal for transactions, settlements, and value storage. They serve as a bridge between traditional finance and the digital asset ecosystem, facilitating cross-border payments, foreign exchange reserves, and various financial activities.

Stablecoins, initially designed for the crypto asset space, have rapidly expanded into traditional financial sectors such as payments. Their advantages, including point-to-point payments, high efficiency, low costs, and stable value, have made them popular for cross-border payments and foreign exchange reserves. Additionally, stablecoins play a crucial role in decentralized finance (DeFi) and other innovative financial activities. Globally, the strategic importance and market size of stablecoins have been steadily increasing. As of May 31, 2025, the total market value of stablecoins exceeded 250 billion dollars, reflecting a growth of over 40 billion dollars since the end of 2024.

The tokenization of real-world assets (RWA) has been accelerating both domestically and internationally. In 2024 and 2025, projects involving the tokenization of assets like US dollar-pegged stablecoins USDT and USDC have gained significant traction. These stablecoins, with market values exceeding 153 billion dollars and 61 billion dollars respectively, account for over 85% of the global stablecoin market. Internationally, regions like the United States and the European Union are actively promoting stablecoin legislation to maintain their competitive edge in the global stablecoin market. In China, several RWA projects have been launched, including those involving renewable energy, photovoltaic green assets, and digital islands. The Chinese government has also introduced policies to support RWA innovation, emphasizing compliance and data ownership. The implementation of the Stablecoin Ordinance in China Hong Kong further solidifies the region's commitment to stablecoin regulation and development.

The successful IPO of Circle is anticipated to have a positive impact on the stablecoin market, potentially driving further innovation and adoption. As stablecoins continue to gain traction, they are likely to play an increasingly important role in the financial ecosystem, bridging the gap between traditional finance and the digital asset world. This development could lead to a more interconnected and efficient financial system, benefiting both investors and financial institutions.