Circle Listing: A Milestone Event in the encryption Industry

The issuer of the world's second largest stablecoin USDC, Circle, officially listed on the New York Stock Exchange last Thursday evening. The issue price was $31 per share, and on the first day of trading, it closed with an increase of 168.48%, with a stock price of $83.23, bringing the market value to over $18.5 billion at the close of that day. The next day, Circle's stock price continued to rise by nearly 30%.

The total market capitalization of stablecoins worldwide has surpassed 250 billion US dollars, with USDT and USDC together accounting for 86% of the market share. This also explains why Circle has adjusted its opening price multiple times on the eve of its IPO, with market reactions far exceeding expectations.

The listing of Circle has made the concept of "stablecoin" the focus of financial headlines, and has allowed more traditional finance professionals to recognize the value of stablecoins. Meanwhile, the Hong Kong SAR government has officially announced that the Stablecoin Ordinance will take effect on August 1, 2025, further driving the popularity of stablecoins in the financial market. The GENIUS stablecoin bill in the United States is also being drafted, and various signs indicate that the development of stablecoins is timely.

Four years ago, during the same period, the largest cryptocurrency exchange in the United States successfully went public on Nasdaq, with its stock price soaring to $429 on the first day of trading, resulting in a market capitalization exceeding $112 billion, bringing huge returns for early investors. Although it went through more than two years of adjustment afterward, its successful listing showed the traditional financial market the potential of emerging financial markets and paved the way for the later emergence of Bitcoin ETFs and various reserve assets.

The listing of Circle is highly significant as it brings stablecoins into the mainstream and has garnered interest from some traditional capital. Demonstrating financial capability and company transparency through the listing is crucial for the development of stablecoins. As Circle co-founder Jeremy Allaire stated, the IPO will bring more trust, compliance, and transparency to Circle's regulated stablecoin network and will help establish partnerships with other financial institutions.

Although stablecoins deviate from Satoshi Nakamoto's original ideal of decentralized currency to some extent, they do inherit some of the concepts in terms of technological form. A recent report from a well-known venture capital firm pointed out that in the past 12 months, the trading volume of stablecoins has reached 33 trillion USD, continuously setting historical highs, nearly 20 times the trading volume of a certain payment giant and nearly 3 times the trading volume of a certain credit card company.

Although the market size of stablecoins is already considerable, there is still significant growth potential compared to the traditional payment market. In the next 3-5 years, stablecoins are expected to become a single trillion-dollar market, which may currently just be in its early stages.

The listing of Circle has provided a "rebranding" opportunity for stablecoins, but this is just the beginning. As the most mature application in the encryption industry apart from trading, stablecoins may become the key to bringing Web3/encryption applications into thousands of households.

For investors and entrepreneurs, the stablecoin sector holds immense opportunities. Whether it is participating in the creation of money or providing services for this field, there is vast room for development. Risks and opportunities coexist, and everything is just beginning.