Stablecoin company Circle Internet’s (CRCL.N) shares rocketed on their first day of trading on the New York Stock Exchange Thursday, opening at more than twice their initial offering price in one of the largest crypto-related listings to date. The stock launched at $69 per share, valuing the digital currency issuer close to $18 billion on a fully diluted basis, far exceeding its IPO price of $31.
This impressive market debut is expected to boost confidence among other crypto companies aiming to enter public markets, as renewed enthusiasm for digital assets and favorable regulatory trends ignite a wave of potential new listings. Matt Kennedy, senior strategist at Renaissance Capital, noted, “More public crypto companies pave the way for future entrants. It’s not just the quantity but also the diversity of crypto firms listed that matters.”
The industry’s outlook has brightened under a regulatory environment shaped by the previous U.S. administration, which adopted a relatively lenient approach, fostering a more crypto-friendly landscape. Additionally, an increasing number of firms are adding cryptocurrencies to their balance sheets, eager to capitalize on surging token valuations.
Circle’s IPO stands as the largest crypto listing since Coinbase’s 2021 debut and marks the first major public offering from a stablecoin issuer. The company had previously tried to go public through a $9 billion special purpose acquisition company (SPAC) deal in 2022, but the plan collapsed.
Stablecoins Step into the Spotlight
Circle’s listing is a significant milestone for the stablecoin sector, which has garnered growing attention amid evolving regulatory frameworks. Passage of the anticipated stablecoin legislation could accelerate digital token adoption, helping stablecoins break further into mainstream finance.
Beyond their role in cryptocurrency trading, stablecoins are increasingly used for digital payments. Wall Street analysts predict stablecoins will become a dominant force in finance, potentially blossoming into a multi-trillion-dollar market opportunity in the near future.
Founded in 2013 by Jeremy Allaire and Sean Neville, Circle issues USDC, the world’s second-largest stablecoin by market capitalization, trailing only Tether. The company also offers EURC, a euro-backed stablecoin, expanding its footprint in the digital currency space.