Stablecoin News – Circle, the issuer of USD Coin (USDC), saw its stock rise 10% on July 12, 2025, adding to a 500% surge since its June 5 IPO. With USDC’s $61 billion circulation, Circle holds a 24% share of the $253 billion stablecoin market, trailing Tether’s $158 billion USDT.
The stock jump reflects robust investor confidence in USDC’s regulatory compliance and its growing role in global payments, particularly for remittances and DeFi applications, which accounted for 30% of stablecoin transactions in 2024.
USDC, pegged 1:1 to the U.S. dollar, is backed by cash and low-risk securities, with monthly attestations ensuring reserve transparency, a contrast to Tether’s past scrutiny.
Circle’s application for a national trust bank charter, announced June 30, aims to integrate USDC into traditional banking, enhancing its appeal to institutions like PayPal, which uses USDC for payments.
The company’s partnerships with Fireblocks for secure custody further bolster trust, aligning with the U.S.’s GENIUS Act, which is nearing a House vote and mandates similar reserve standards.
The BIS’s June 24 warning about stablecoin risks, including potential bank runs, underscores the need for regulation, which Circle’s compliance strategy mitigates.
However, competition from Ripple’s RLUSD and Hong Kong’s HKD-pegged stablecoins challenges USDC’s growth. The EU’s MiCA framework, fully active in July, imposes strict rules on stablecoin issuers, potentially impacting Circle’s European operations.
Circle’s stock performance signals stablecoins’ rising prominence in digital finance, with USDC’s integration into platforms like Solana enhancing transaction speed. Yet, global regulatory fragmentation and market volatility pose risks.
Circle’s focus on compliance and banking integration positions it to capitalize on the $2.8 trillion stablecoin market projected by 2028, but sustaining growth requires navigating competitive and regulatory pressures effectively.
