On June 5, circle will become the first stablecoin company to be listed on the NYSE, and formally mark the end of its seven-year journey toward going public.

According to the latest data, Circle priced its IPO at $31 per share, exceeding the initial expected range of $24-$26, raising $1.1 billion under the ticker "CRCL." Due to surging demand, the originally planned issuance of 24 million shares was expanded to over 34 million.

The market's optimism is evident, but for the industry, Circle's listing means far more than just selling shares.

Though Circle is well-known in crypto circles, it may still be unfamiliar to outsiders. Founded in 2013 and headquartered in Boston, Circle started as a U.S.-based consumer fintech startup offering Bitcoin storage and fiat currency exchange services. Over time, its business evolved - from crypto wallets to exchanges - before ultimately settling on its flagship product: USD Coin (USDC). As a homegrown dollar-backed stablecoin, USDC faces stricter compliance requirements compared to the more globally dominant USDT, making it a preferred choice for U.S. users. In the stablecoin market, USDC consistently ranks second, with a current circulation of $61 billion, holding a 27% market share - just behind USDT.

From its early days, Circle has been a darling of venture capital. Its $9 million Series A in 2013 set a record for crypto startups at the time, attracting heavyweights like Goldman Sachs, IDG, and DCG. Even Chinese investors, including Baidu Ventures, China Everbright Limited, CICC Alpha, and CreditEase, participated in its Series D. However, due to regulatory crackdowns, Circle's China entity, Tianjin Shike Technology, was dissolved in 2020. Interestingly, after Circle's IPO announcement, shares of China Everbright surged 44% in five days - a nostalgic footnote to its Chinese ties.

Despite its star-studded investor lineup, Circle's path to IPO was far from smooth. In 2018, after reaching a $3 billion valuation in its Series E, Circle first explored going public, emphasizing compliance, transparency, and regulatory approval. But the 2019 crypto crash slashed its valuation to $750 million, derailing its debut.

In 2021, Circle revived its IPO plans, opting for a SPAC merger with Concord Acquisition Corp at a $4.5 billion valuation. Yet the SEC intervened, launching an investigation into whether USDC qualified as a security, forcing Circle to abandon the effort once again.

Fast forward to 2024: Circle quietly filed for an IPO in January, avoiding public scrutiny. On April 2, it submitted its S-1 to the SEC, officially kicking off the process. However, in early May, Bloomberg reported that Ripple had made a lowball acquisition offer, which Circle rejected. Soon after, The Block revealed that Circle was actively seeking buyers - including Coinbase and Ripple - with a minimum valuation of $5 billion. The dual-track strategy (IPO + sale) suggested Circle was playing the field for the best deal.

On May 27, Circle denied the sale rumors and formally applied to list on the NYSE. Its prospectus outlined plans to issue 24 million Class A shares (9.6 million new, 14.4 million from existing shareholders) at $24-$26 per share, with JPMorgan and Citi as lead underwriters.

By June 5, Circle's debut saw overwhelming demand - 25x oversubscription - pushing the final offering to 34 million shares at $31 each, well above expectations. At this price, Circle's valuation hit $6.2 billion ($7.2 billion fully diluted, including employee stock options and warrants). While short of its 2022 $9 billion target, the figure remains robust in today's tighter crypto liquidity environment.

The prospectus reveals both strengths and risks. USDC's $61 billion circulation, though dwarfed by USDT's $150 billion, solidifies its No. 2 spot. As U.S. stablecoin legislation advances, long-term growth potential remains.

However, Circle's business model carries inherent vulnerabilities. In 2024, it reported $1.676 billion in revenue (up 16% YoY), with 99.1% ($1.661 billion) coming from interest on USDC reserves - essentially a bet on high interest rates. A Fed pivot to cuts could crater earnings, exposing Circle to macroeconomic swings.

Moreover, while revenue hit $1.6 billion, net income was just $156 million. The missing $1.45 billion? Distribution costs. Though minting stablecoins is near-zero cost, circulating them relies heavily on exchanges. Coinbase alone took a $900 million cut (54.18% of revenue), while Binance secured a $60.25 million upfront payment plus monthly incentives for holding $1.5 billion in USDC. This reliance erodes Circle's pricing power.

Valuation debates persist. Some argue that since Coinbase derives 14.6% of revenue from USDC, Circle should be worth $100+ billion (vs. Coinbase's $65 billion market cap). Circle itself reportedly sought $9-$11 billion in sale talks, but buyers balked.

Institutional interest, however, is strong. Cathie Wood's ARK Investment Management filed to buy up to $150 million in shares, while BlackRock plans to acquire ~10% of the IPO. Notably, in March, Circle entrusted 90%+ of its reserves (ex-cash) to BlackRock - a strategic move securing institutional backing while avoiding competition from a BlackRock-issued stablecoin.

Skeptics question whether Circle's IPO is merely an exit for early investors. Yet most backers entered at high valuations ($3B in 2018, $4.5B in 2021), limiting today's upside. Unlike Coinbase's direct listing, Circle's traditional IPO imposes a 180-day lockup, preventing immediate insider dumping. Given the oversubscription, the market expects a strong debut.

Regardless, Circle's listing is a watershed moment. For the company, it alleviates funding pressures, cements its place in finance, and positions USDC as the gold standard for compliant stablecoins - especially under upcoming U.S. regulations.

For the industry, the implications run deeper. Circle's NYSE debut signals Washington's push to integrate stablecoins into traditional finance, reinforcing the dollar's dominance in crypto. In the long term, this could disrupt cross-border payments, bypassing legacy banking systems. Some analysts even see Circle as a valuation anchor for DeFi, potentially lifting stablecoin-adjacent projects.

Theoretical impact aside, the market will have the final say - whether Circle's IPO is a milestone or a cash-out play will be written in its trading debut.