The "stablecoin first stock" Circle (CRCL.US) saw its stock price quadruple in the first three days of its listing! This sets a new record for US stocks in 2020.

After a strong influx of funds following its IPO last Thursday, the stock price of the globally renowned stablecoin issuer Circle (CRCL.US), which holds the title of "number one stablecoin stock," has quadrupled in just three days since its IPO. The pricing after the market close on Monday in the US stock market indicates that the stock still seems to have further room for growth. The company's IPO was priced at $31, and it doubled on the first day. It rose another 30% on Friday, closing at $107.70. The stock price surged over 27% on Monday, breaking through $135 per share, quadrupling from the IPO price, as investors continue to bet on the future of new forms of currency, payment transfer methods, and financial systems. Large commercial banks on Wall Street are exploring the possibility of jointly issuing stablecoins, which is also contributing to the continuous increase in Circle's stock price. As of the close of the US stock market on Monday, Circle's stock price closed at $115.25, reaching as high as $138.57 during trading. Based on the closing price, the stock price of the company has increased by 270% in the three days since its IPO, or even more than four times based on the highest trading price. According to US stock IPO statistics, among large US IPOs that raised over $1 billion since 2020, Circle's +270% three-day cumulative increase is significantly leading, ranking number one in the three-day cumulative stock price performance of large US IPOs in the past five years. What are stablecoins? Compared to cryptocurrencies like Bitcoin (BTC-USD) with extremely volatile prices, stablecoins can quickly complete transactions within a "stable" price range. Not all stablecoins are created equal (remember the Terra stablecoin collapse incident?), Circle's USDC (USDC-USD) is fully anchored to the US dollar. We can think of it as "casino chips" in the crypto world or "digital cash" on the blockchain. These "USD-pegged cryptocurrencies" issued by Circle and other stablecoin issuers maintain an equivalent reserve of US dollars to support their anchoring (i.e., fiat currency collateralization). Circle also earns interest by investing most of its reserves in low-volatility and short-term US Treasury bonds, with current short-term US bond holdings reaching several billion dollars. In terms of overall usage, according to the latest calculations by "Wood Sister" Wood's investment firm Ark Invest, the trading volume of stablecoins in 2024 may even surpass Visa (V.US) and Mastercard (MA.US), although these data may also reflect recurring wallet transfers, Siasun Robot&Automation trades, or other short-term arbitrage activities. As another gateway for mainstream global financial assets to enter the crypto investment field, Circle is the first large IPO in the crypto industry since Coinbase (COIN.US) in 2021. The USDC stablecoin issued by Circle can be transferred at internet-level speed, with transaction costs only a fraction of a cent and almost instant settlement. Additionally, Circle actively embraces regulation in all countries it operates in, such as the GENIUS Act accelerated by the US Congress and the implementation of the "Stablecoin Regulations" in Hong Kong, China. This has given many investors more confidence in the efficiency of the stablecoin market. Stablecoins have become a popular way for enterprises to pay global employees or conduct peer-to-peer transactions. Stablecoins are essentially "on-chain dollars," with highly liquid US dollar assets (cash, short-term US bonds) serving as underlying collateral at a ratio of 1:1. By combining the "dollar" with the "blockchain," stablecoins provide a stable and efficient new payment medium, showcasing the commercial potential of "digital dollarization." Undoubtedly, the high interest rates and interest rate cycles allow these reserves to earn substantial interest, bringing bank-level profits to stablecoin issuers like Circle and Tether, while also providing "quasi-money market" returns. Regulations such as the US GENIUS Act, EU MiCA, and the Hong Kong "Stablecoin Regulations" are being implemented or have already been in place, and major Wall Street banks are planning to jointly issue stablecoins. Coupled with Circle's IPO as the first large cryptocurrency company since Coinbase in 2021, scarcity and policy dividends have sparked funding frenzy, creating a synergy in the hype around the "stablecoin concept." While stablecoins have primarily served as channels for traders to move funds in and out of other cryptocurrencies, an increasing number of cryptocurrency investors are optimistically predicting that with Trump's return to the White House strongly supporting crypto development, stablecoins may soon play a more significant role in the global commercial and trade systems, particularly as stable payment tools for cross-border transactions.