Circle Internet Group’s shares saw a remarkable surge, rising over three times its opening price of $31 and bringing in $1.1 billion through its IPO. The fresh capital is expected to support the growth of Circle’s USDC stablecoin, which is tied directly to the value of the U.S. dollar and can be redeemed on a one-to-one basis.
This strong market debut follows a trend of crypto firms stepping into public markets. Companies like Galaxy Digital and eToro, known for their crypto trading services, have also taken the IPO route recently. eToro’s stock jumped 34% after its Nasdaq listing, showing that investor confidence in crypto-focused businesses is growing.
In a major policy move, the United States Senate approved the GENIUS Act last month. The legislation lays the groundwork for regulating stablecoins that are backed by the dollar, offering clearer rules for companies operating in this space.
Data from S&P Global Market Intelligence shows that crypto-related IPO activity reached a high in 2021, with 11 deals worth $596 million. This year, five such IPOs have already brought in over $2.1 billion, indicating a significant rise in investor interest.
Francois Chadwick, a partner at KPMG who focuses on high-growth firms, explains that public listings offer a more structured and regulated way for people to invest in the crypto sector. Unlike direct crypto purchases, IPOs come with oversight, which appeals to more cautious investors.
It’s not just American companies making headlines. Singapore-based Antalpha Platform Holding went public in the U.S. earlier this year. Chadwick points out that the trend is global, with crypto-friendly regulations in countries like the UK and Switzerland encouraging more firms to list. He also mentioned South Korea and Japan as regions with strong crypto markets and positive regulatory support.
Chadwick added that although raising money in traditional currency might seem odd for crypto businesses, public listings give them access to substantial funding. These resources can fuel growth, support product development, and open doors to new markets. It also gives them a chance to show that they are compliant with financial rules, which builds investor trust.
Circle’s successful launch is likely to encourage other crypto companies to consider going public. Industry watchers point to Kraken and Gemini as potential future listings. With venture capital cooling off after FTX’s collapse in 2022, IPOs are becoming a key funding route for blockchain businesses ready for the spotlight.
The success of crypto firms that have had IPOs is a boon for the entire industry, and entities like Canaan Inc. (NASDAQ: CAN) applaud such progress since a win for one company is a win for all within the industry.
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