Circle shares (NASDAQ:CRCL) have been on a tear since their initial public offering (IPO) earlier this month. Circle shares were initially priced at $31/share, but obviously, the underwriters and the company left a lot of money on the table as Circle closed at over $151 yesterday, about a 5X jump in less than two weeks.
In pre-market trading today, Circle is poised to continue its incredible run, as shares currently indicate they will open over 4% higher.
So, what is fueling the Circle bull?
First, Circle is very well positioned to capitalize on the stablecoin market. As the issuer of USDC, a dollar-based stablecoin, Circle has always pursued a compliance-first approach to enabling the future of payments and transfers. While many people lump USDC in with crypto in general, and its top use today is to move in and out of crypto trades, this belies the fact that Circle is really just an efficient way to move value. A digital dollar that is secure and immediate in its transfers. There is no other public play available today in the stablecoin sector, so everyone who wants to be a part of this is rushing to get in.
At the same time, legislation is being introduced in the House and the Senate to establish regulatory parameters for stablecoin issuers. While Circle has competitors and will have more, the company already has the tech stack in place to provide the service globally.
Later today, the US Senate has scheduled a vote on the CLARITY Act, the legislation that will define how payment stablecoins will be regulated. The House is also working on a bill, and it is almost certain that stablecoin legislation will be signed into law.
As the US is embracing stablecoins, other jurisdictions will also get in the game. While some jurisdictions are pursuing central bank digital currencies (CBDCs), privacy concerns have hindered this approach in the US. This will spill over elsewhere.
The digital dollar is here to stay, and it is only the beginning. For the time being, Circle is the biggest beneficiary.
Have a crowdfunding offering you'd like to share? Submit an offering for consideration using our Submit a Tip form and we may share it on our site!