The stock market debut of Circle Internet Group delivered enormous returns for early investors and may significantly accelerate the evolution of the cryptocurrency market. However, the company’s IPO also triggered heated discussions about whether its valuation is justified.
Circle went public on the New York Stock Exchange on June 5, 2025, offering shares at $31 apiece—above the previously indicated range of $27–28. The IPO raised approximately $1.1 billion.
“The stock soared as much as 223% during its debut, generating huge profits for investors,” said Tymoteusz Turski, equity market analyst at XTB, in an interview with MarketNews24. “But from the company’s standpoint, the debut wasn’t ideal—it could have priced its shares significantly higher, potentially earning $3 billion more from the IPO.”
USDC: A Central Product in a Growing Market
Circle’s flagship product is the USD Coin (USDC), a stablecoin pegged 1:1 to the U.S. dollar. In 2024, Circle reported $1.68 billion in revenue, largely from interest earned on USDC reserves—primarily U.S. Treasury bonds. In Q1 2025 alone, these interest revenues increased by 55% to $557 million. However, net profit dropped 42% year-over-year to $155 million in 2024.
USDC currently holds a 24.4% share of the global stablecoin market, which now totals $250 billion in capitalization.
“Circle’s stock price is largely a bet on the company’s future, given the explosive growth of the stablecoin segment,” said Turski. “But with a P/E ratio of 161, the current valuation looks extremely high.”
What Is USDC and Why Does It Matter?
USDC, launched by the Centre consortium (a partnership between Circle and Coinbase), is designed to be a transparent and regulated digital dollar. Each USDC token is backed by U.S. dollar reserves or short-term Treasury securities, and these reserves are regularly audited by independent firms.
The stablecoin is used for fast and low-cost transactions, often outperforming traditional banking systems in terms of speed and fees. USDC operates on blockchain infrastructure, making it secure and difficult to tamper with.
Still, its stability relies on the trust in its issuer and the security of the underlying banking systems. Any disruptions in the banks holding USDC reserves could undermine the token’s peg to the dollar.
A Broader Vision: Cross-Border Finance and Institutional Adoption
Circle aims to capitalize on the growing use of stablecoins in cross-border payments, institutional finance, and global commerce. The recently introduced GENIUS Act in the U.S. could provide USDC with a regulatory edge in international settlements.
In 2025, Circle launched the Circle Payments Network—a platform designed for instant stablecoin settlement for banks, neobanks, and digital wallets.
While Tether and Ripple remain key competitors, Circle is positioning itself as a transparent and compliant alternative, appealing especially to regulated financial institutions.
A Step Toward Greater Crypto Legitimacy
“Stablecoins and bitcoin are fundamentally different assets,” said Turski. “Since stablecoins are pegged to the dollar, you won’t see the kind of wild gains—or losses—that you do with bitcoin. Speculative investors might still lean toward bitcoin, but Circle’s IPO will likely drive wider acceptance of cryptocurrencies by major financial players.”
In that sense, Circle’s public debut may represent a turning point for crypto mainstreaming, serving as a bridge between decentralized finance and regulated capital markets.
Source: CEO.com.pl
