Circle’s Stock Price Peaks at $151 After IPO: The Impact on Other Stablecoin Issuers

Circle finally began trading on the New York Stock Exchange on June 5 after launching an initial public offering of 24 million shares in May 2025 at $31. It’s been a ride for one of the leading stablecoin issuers on the NYSE, which saw the initial stock price skyrocket by over 165% from its opening of $69 to $83 on its first day. On June 16 (U.S. time), Circle’s stock price peaked at $165.60 and closed at $151.06, giving the company a market capitalization of $33.617 billion. This marks a 434% increase from its IPO price, continuously setting new all-time highs. 

The stablecoin issuer has undoubtedly surpassed expectations with its record-breaking stock price, but the real success isn’t trading on the NYSE – it’s the market’s changing perspectives of stablecoins and the convergence of TradFi and crypto. For the first time, we see a stablecoin issuer make a grand entrance to the NYSE, further legitimizing Circle and its USDC coin. The recent spike in stock price is proof that Circle is doing well, but does this signal to other stablecoin Issuers, such as Tether and Paxos, to make their IPO move?

Why Circle’s Stock Spiked

Circle soared on the stock exchange for various reasons. First is the regulatory validation. The Senate finally gave the green light to the stablecoin legislation, also known as the “Genius Act.” The bill provides a clearer framework for stablecoins, including a 1:1 reserve requirement and efficient reporting. 

The regulatory clarity was in Circle’s favor, which has shown transparency in its dealings ever since. Circle’s regulation meets innovation model has always been appealing to investors. USDC is 100% backed by cash and the U.S. Treasury, giving investors peace of mind. Moreover, the stablecoin issuer releases monthly attestations to its reserves and partners with global regulators to ensure compliance. Therefore, the passage boosted investor confidence and public trust in Circle, which reflected on the stock price. 

Of course, Circle is still benefiting from the IPO effect. Its IPO was the largest and most notable debut a crypto company has recorded since Coinbase in 2021. The frenzy confirms increased public interest and institutional faith in Circle.

The Implications for Other Stablecoin Issuers

Circle’s IPO has been a tremendous success, thanks to its transparent model. It’s a blueprint for other stablecoin Issuers, but not every issuer is willing to adopt this model. 

For instance, Tether, the largest stablecoin by market cap, has long faced criticism for a lack of transparency in its reserves. It dominates in trading volumes, particularly in Asia and emerging markets, but is struggling with the United States regulators for its “dubious” operations. Tether would have to undergo a structural revamp before considering an IPO.

Paxos, the issuer of USDP, is a regulated company in the United States. While smaller in scale compared to Tether, it’s one of the few stablecoin Issuers to have full compliance and could consider going public. Algorithmic stablecoins, such as Frax or DAI, are innovative projects that face an uphill battle regarding compliance. Investors are wary of their long-term sustainability, given that their fellow algorithmic stablecoin, Terra/LUNA, went down the drain in 2022. 

Will Circle Open the IPO Floodgates?

Circle has proven that the public appetite for stablecoins exists. Experts expect more stablecoin companies and even crypto-native infrastructure firms to go public. This would onboard more investors, who have been eager to gain exposure to the stablecoin niche. The broader impact of this is a massive inflow of capital into the stablecoin market.

Going public may seem like the icing on the cake, but it has downsides too. First, stablecoin companies will be under close watch by the SEC and global regulators. Furthermore, full audits and reserve disclosures are mandatory, giving no room for manipulation. Given that stablecoins heavily depend on reserves, increasing supply without adequate backing could cause depegging. 

What’s Next for Circle?

Following Cicle’s IPO, the company would want to maintain the momentum long-term. However, no one can predict if the company will be subjected to scrutiny in the future. For now, the company is in a celebratory mood. It has become the north star of the crypto industry.