Wall Street’s new darling: Stablecoin issuer Circle is minting billions

While Bitcoin grabs headlines with record-breaking rallies, a little-known crypto company is stealing the spotlight with a surprisingly simple business model. As reported by Gizmodo.com, Circle Internet Group, the firm behind the USDC stablecoin, has seen its stock skyrocket 675% in just eleven trading days since going public on June 5—adding over $42 billion in market value.

The firm now boasts, as per the report, a valuation that rivals Silicon Valley unicorns and AI giants, despite offering no revolutionary tech.

How Circle’s business works

Circle’s model is shockingly straightforward, according to a report in Gizmodo.com. Users exchange U. dollars for Circle’s digital token, USDC, a stablecoin pegged 1:1 to the dollar. Circle takes those real dollars and invests them in low-risk, interest-earning assets.

Why the sudden hype?

The surge in Circle’s valuation comes amid growing optimism that stablecoins are going mainstream. The Senate’s recent passage of the “Genius Act”, which opens the door for banks, fintechs, and even major retailers to use stablecoins for payments, has fueled bullish sentiment.

Citi analysts reportedly predict the stablecoin market could grow to $3.7 trillion by 2030. Reddit’s r/wallstreetbets is already buzzing, with one user quipping that Circle is “a Treasury ETF in a trench coat.”

The risks

Despite the hype, Circle’s business faces serious vulnerabilities, the report stated. If the Federal Reserve cuts interest rates, Circle’s revenue—largely driven by interest on Treasury holdings—would shrink.

Larger players could launch their own stablecoins, potentially pushing Circle out of the spotlight.