What Is USDC? Circle Goes Public in the U.S.

On June 5, 2025, the New York Stock Exchange welcomed a milestone in crypto finance. Circle Internet Financial, the issuer of the world’s second-largest stablecoin USDC (stock code: CRCL), officially listed its shares, becoming the world’s first publicly traded “stablecoin”.

On its first day of trading, Circle’s stock price soared from the issue price of 31 USD to 69 USD at the opening, hitting a peak of 103.75 USD during the day, and ultimately closing at 83.23 USD, with a single-day increase of 168.48%, raising its market value to 18.4 billion USD.

Wall Street’s Crypto Frenzy

Circle’s IPO can be described as a phenomenal event in the capital markets. Its sub_script_ion multiple exceeded 25 times, far surpassing market expectations. The company initially planned to issue 24 million shares with a pricing range of 24-26 USD, but due to explosive demand, it ultimately issued 34 million shares at 31 USD per share, raising a total of 1.05 billion USD.

Top investment institutions are entering the market: BlackRock plans to acquire about 10% of the IPO shares, while “Woodstock” Cathie Wood’s ARK Investment Management has invested a staggering $373 million to purchase 4.5 million shares.

The surge in stock prices has also boosted early shareholders’ returns. China Everbright Holdings, as an investor in 2016, saw its stock price soar by 34.05% in the 4 trading days following the announcement of the listing. Funds under Huaxing Capital also received substantial returns due to their investment in Circle in 2018.

USDC: The Dollar Bridge in the Crypto World

As Circle’s core product, USDC is a stablecoin pegged to the US dollar at a 1:1 ratio. Its value is backed by cash reserves in USD and short-term US Treasury bonds, ensuring a stable price around 1 USD.

Unlike volatile cryptocurrencies like Bitcoin, stablecoins are designed specifically for trading, serving as a bridge between traditional finance and the crypto world.

As of June 2025, the market capitalization of USDC reached 61.5 billion USD, accounting for approximately 29% of the stablecoin market, second only to Tether Issued USDT. Its application scenarios are extensive:

• Decentralized Finance (DeFi): In Ethereum and Solana Stablecoins dominate the trading volume on the blockchain (approximately 69%), used for lending, liquidity provision, and trading settlement.
• Cross-border payments: Transaction speed reaches seconds level, cost is less than 1 cent, supported by over 500 digital wallets and platforms worldwide.
• Inflation hedge tools in high inflation countries: In countries like Argentina where the annual inflation rate exceeds 200%, it has become the main way for citizens to store value.

Interest Spread: A Gold Mine and a Risk

Circle’s business model is simple and efficient: it receives customers’ fiat funds into reserve accounts, mints the corresponding amount of USDC, and then earns interest through the assets in the reserve accounts.

In 2024, Circle’s total revenue reached $1.676 billion, with 99.1% coming from reserve income. These reserves are primarily invested in U.S. Treasury bonds and money market funds. In a high-interest-rate environment, this “Treasury bond arbitrage trading” model has brought substantial profits to Circle.

However, this model also harbors risks. Circle admitted in its prospectus: “Interest rates are both a source of income and a risk hotspot.” If the Federal Reserve cuts interest rates, a 1% decrease in rates could reduce the company’s income by as much as $441 million.

The more severe issue is the risk of a bank run. During the Silicon Valley Bank crisis in March 2023, Circle experienced a temporary de-pegging of USDC due to $3.3 billion in reserves being involved in the bank’s bankruptcy turmoil, triggering panic redemptions in the market. A Nobel Prize-winning economist has further warned that stablecoins belong to a new type of shadow banking system and could become a “gray rhino” for the financial system.

Regulation and Compliance: The Tightening of Stablecoins

Just before Circle’s IPO, a key breakthrough was achieved in the global regulatory framework. On May 19, 2025, the U.S. Senate passed the “Guidance and Establishment of a National Innovation Act for U.S. Stablecoins” (GENIUS Act), becoming the first federal-level regulatory framework for stablecoins in the United States.

Two days later, the Hong Kong Legislative Council passed the “Stablecoin Bill,” establishing a licensing system for fiat stablecoin issuers. Both bills will take effect on August 1.

Circle is also taking proactive measures in compliance. On May 28, 2025, in accordance with a court order, Circle froze two Solana wallets related to the Argentine Libra meme coin scandal, involving funds amounting to 58 million USDC. The case involves promotional controversies surrounding the Argentine president and is set to be heard on June 9.

Transparency in Operations: The Trust Foundation of Stablecoins

Circle’s USDC sets a benchmark for transparency in the industry. Its reserve assets are independently verified by the Big Four accounting firms every month, and a public dashboard is in place to display the reserve composition in real-time.

This transparent operation is in stark contrast to traditional banks. Most of the dollars in traditional banks are only backed by a portfolio of loans, while every USDC is backed by an equivalent amount of highly liquid dollar assets.

Crypto analyst Omar once questioned the valuation of Circle, however, the enthusiastic voting of the capital markets has provided the answer: the USDC reserve fund managed by BlackRock has surpassed $50 billion.

Future Outlook

With the U.S. “Genius Act” and Hong Kong’s “Stablecoin Regulation” set to take effect on August 1, the regulatory framework for stablecoins is rapidly taking shape. The financial order of the real world is being rebuilt on the blockchain, and USDC has become an indispensable cornerstone of this.