Circle Stock Surges 750% Dominating VanEck Index

Circle Internet Group has emerged as the largest component of VanEck’s global crypto equity index, reflecting a surge in institutional interest in yield-bearing digital assets. This development comes as decentralized finance protocol Veda secures $18 million in funding to expand its vault platform, further fueling the growth of the onchain yield economy.

Circle’s stock has seen a remarkable rise, dominating VanEck’s MVIS Global Digital Assets Equity Index. As of Monday, Circle’s stock represents 13% of the index, surpassing industry leaders like Coinbase and MicroStrategy. This increase highlights investor confidence in Circle’s performance and its strategic importance within the digital asset sector. VanEck’s index serves as the foundation for its Digital Transformation ETF, which aims to replicate the performance of companies with significant exposure to digital assets. The ETF holds $210 million in net assets and includes major players like Coinbase, MicroStrategy, and Block.

Circle’s stock has surged over 750% since its IPO, closing above $263 on Monday. The company’s IPO was expanded to meet robust institutional demand, positioning Circle as one of the most valuable publicly traded crypto firms. Circle’s flagship product, USD Coin (USDC), is a key driver of this success. USDC is the second most circulated stablecoin, powering various applications in the digital economy, from DeFi to centralized exchange settlement layers. The pending GENIUS Act in the US Congress aims to provide regulatory clarity for stablecoins, which could further accelerate USDC’s momentum. Additionally, a partnership between Coinbase Derivatives and Nodal Clear is set to integrate USDC into US-regulated futures markets as eligible collateral by 2026, bridging crypto and traditional finance.

Circle’s rise signifies a broader trend in the digital asset economy, where institutional allocators are increasingly focusing on infrastructure and utility providers rather than pure-play exchanges or mining firms. The growing importance of stablecoin issuers like Circle underscores their role in shaping the future of finance. As the market evolves towards utility-driven frameworks and regulatory clarity, Circle is well-positioned to benefit from increased adoption. The company’s success symbolizes the merging of crypto-native innovation with traditional financial instruments, potentially leading to a future where regulated stablecoins like USDC serve as the backbone of global payments, trading, and settlement infrastructure.

In parallel, Veda has secured $18 million in funding to expand its vault platform, which supports a range of DeFi use cases, including liquid staking tokens, decentralized savings accounts, and synthetic stablecoins with built-in yield mechanisms. Veda’s platform already powers several of the largest vaults in the space, with a total value locked (TVL) surpassing $3.3 billion. The company aims to unlock more efficient and accessible Bitcoin-based yield products through partnerships with developers like Lombard, which focuses on liquid-staked Bitcoin using Babylon. This move addresses the limited programmability of Bitcoin in DeFi participation.

Veda’s funding round was led by CoinFund, with major backers including Coinbase Ventures, Animoca Ventures, BitGo, Mantle EcoFund, and GSR. The participation of key players in the blockchain infrastructure and decentralized financial systems, such as the co-founders of Anchorage, Ether.fi, and Polygon, endorses Veda’s cross-chain strategy and vision for unlocking passive income opportunities across the crypto spectrum. By enabling asset issuers to create yield-generating instruments, Veda aims to become a foundational layer of the onchain financial system, potentially undercutting the appeal of low-interest savings accounts in regions with high inflation and currency devaluation.