For Circle's initial public offering (IPO), the significance lies in the fact that it has elevated stablecoins, which were previously recognized only by a select few, to the "mainstream stage" and garnered the favor of some of the traditional "old money."

Last Thursday evening, Circle, the issuer of the world's second-largest stablecoin USDC (with approximately 25% market share), officially listed on the New York Stock Exchange (NYSE). The IPO price was set at $31 per share. During the trading session, Circle's stock triggered multiple circuit breakers and closed its first day of trading with a staggering increase of 168.48%, at $83.23 per share. The company's market value exceeded $18.5 billion at the close of trading that day and continued to soar by nearly 30% the following day.

A Booming Market for Stablecoins

The total market value of global stablecoins has now surpassed $250 billion, with USDT and USDC together accounting for 86% of the market share. This is also why Circle adjusted its opening price multiple times on the eve of its IPO—the market proved to be far more robust than anticipated.

Circle's listing on the NYSE has thrust the concept of "stablecoins" into the financial headlines for several days, and to some extent, it has prompted many traditional financial professionals to reassess the value of stablecoins.

Coincidentally, on almost the same day, the Hong Kong Special Administrative Region officially announced that August 1, 2025, would be the implementation date for the "Stablecoin Ordinance," further fueling the popularity of stablecoins in the financial markets. Similarly, the US GENIUS Stablecoin Act is also on the horizon. Everything seems to be falling into place.

The Value of Stablecoins

Here, we will not delve too deeply into the value of stablecoins. After the explosive growth in recent years, anyone who still questions their significance might need to rethink and adjust their perceptions, much like those who now claim that "BTC is useless."

Why Circle's IPO Is a Landmark Event

Let's rewind to four years ago, around the same time during the last bull market cycle. Coinbase, the largest US crypto exchange, successfully listed on NASDAQ. On its first day of trading, its stock price surged to $429 per share, with a market value exceeding $112 billion, bringing hundreds of times returns to many early investors.

However, this was followed by a two-year adjustment period, during which the company's performance in the months after listing was criticized, even being labeled as a "junk company." Yet, it was precisely because of Coinbase's successful IPO that traditional financial markets began to take notice of this emerging financial market. This paved the way for the current BTC ETFs and various reserve assets.

Similarly, the significance of Circle's IPO lies in its ability to bring stablecoins, which were previously recognized only by a select few, to the "mainstream stage" and attract the favor of some traditional "old money." After all, if stablecoins remain within the purview of a small group, it is difficult for them to enter the mainstream world. Especially through an IPO, which showcases its financial capabilities and corporate transparency—this is crucial for the development of stablecoins.

As Circle co-founder Jeremy Allaire said in an interview with Bloomberg: "The IPO will bring more trust, compliance, and transparency to Circle's regulated stablecoin network and help it establish partnerships with other financial institutions."

The Evolution of Stablecoins

In 2008, Satoshi Nakamoto proposed the concept of "trustless currency" and created BTC. The original vision was to use this new form of currency to combat financial institutions that recklessly print money. However, due to various limitations, BTC is no longer an effective means of payment. This is precisely why stablecoins have been able to develop rapidly.

In a sense, stablecoins have replaced part of Satoshi's ideal, albeit only "formally," as stablecoins have returned to the institutional logic, merely borrowing its technological form. However, based on this, we cannot deny their value.

A16z Crypto's latest report indicates that over the past 12 months, the trading volume of stablecoins has reached $33 trillion, continuously setting new historical highs. This figure is nearly 20 times the transaction volume of PayPal and almost three times that of Visa.

The Future Potential of Stablecoins

Some may argue that the current market size of stablecoins is already significant. However, compared to the traditional trillion-dollar payment market, it still seems somewhat "immature." But if we consider that stablecoins could potentially become a single trillion-dollar market within the next 3-5 years, it appears that we are only at the beginning of this journey.

Thus, Circle's IPO is more like a small celebration that brings "legitimacy" to stablecoins. The main act will only begin after this celebration. As the most mature application in the crypto industry aside from trading, stablecoins may very well be the true key to bringing Web3/crypto applications into everyday households, rather than the once fervent NFTs.

For investors and entrepreneurs, there are many opportunities during this period. After all, making money from money is always a good business. If one cannot be a creator of money, at least they can be a service provider in this field. Everything is just beginning, with risks and opportunities coexisting.

So, what will Circle's market value be in four years?