The stock of Circle Internet Group (CRCL), issuer of the world’s second largest stablecoin, rose 168% on its first day of trading on the New York Stock Exchange.
Circle had priced its initial public offering (IPO) at $31 U.S. per share, which was above the expected range of $27 U.S. to $28 U.S.
However, the stock traded as high as $103.75 U.S. on June 5 after opening at $69.50 U.S. per share on the NYSE.
The stock is up again today (June 6), rising 14% to $94.38 U.S. in premarket trading. The stock trades under the ticker symbol “CRCL.”
Circle is the issuer of USD Coin (USDC), the second biggest stablecoin in the world, comprising 27% of the global market.
The largest stablecoin is rival Tether’s USDT (USDT), which dominates 67% of the stablecoin market.
Stablecoins are cryptocurrencies whose price is tied to an underlying asset, typically the U.S. dollar or price of gold.
The peg to another asset makes stablecoins less volatile than other crypto.
Circle joins Coinbase Global (COIN) and Riot Platforms (RIOT) as one of the few pure-play cryptocurrency companies listed in the U.S., and demand for its stock has been strong.
However, this was actually the company’s second attempt to go public in New York.
A previous merger with a special purpose acquisition company (SPAC) fizzled out in late 2022 amid regulatory hurdles and a downturn in the U.S. stock market.
Circle was founded in 2013 and is based in New York City. The company initially focused on digital payments and crypto wallets before shifting its focus to stablecoins.
Demand for stablecoins is rising due to growing interest among commercial banks and payment firms.
