For more than a decade, bitcoin has been the undisputed face of digital finance. When you feel that “crypto”, you think bitcoin. Its growth and accidents have been considered as Belvethers for the entire industry. This year, it also created new records, strengthening its reign.
But for the last one month, the Crypto world is not talking about bitcoin. Spotlight has been stolen by a company that most people have never heard of.
While the price of bitcoin reached an all -time high level in this spring, its dominance is being challenged. Its market value, while still a $ 2 trillion, looks like a sudden news. Because in the world of finance, Wall Street and Social Media are a new dear: Circle Internet Group.
On 5 June, the circle became public. Its IPO gave the stock a price of $ 31 per share, evaluating the company honorable $ 6.3 billion. What happened next is no less than explosives. In only eleven trading sessions, the circle’s stock touched 675%, leading to its market capitalization to more than $ 48 billion.
In that perspective, the circle is now worth higher than reputed industrial veterans like Ford Motor Company and General Motors. Three vehicle manufacturers in Detroit produce millions of physical cars per year. So, what does the circle produce to justify this shocking evaluation?
The answer is surprisingly simple: a special type of cryptocurrency called stabelcoin.
It works like this. You give the circle an US dollar. In turn, they give you one of their digital tokens, called USDC. This token is a stabechoin, which means its value is judged for a stable property. In this case, the dollar you gave only gave them. It will always be worth $ 1, because unlike bitcoin or atherium, stabelin is not designed for ups and downs in the price. The circle then takes your real dollar, investing it in safe, interest-bearing assets such as short-lived American Treasury Bonds, and pockets the yield. You get a digital dollar; They get benefits. She is the entire business model.
What Wall Street is buying, it is not just a clever financial loop; It is expected that StableCoins are the future of money. The dream is that USDC will be common as visa or master cards for daily transactions, allowing people to transfer money cheap and immediately without instability of other cryptocurrency.
This hope is being fuel by a favorable air from Washington. The Senate recently passed the “Genius Act”, a historical piece of law that opens the door to banks, to adopt Stabelin for payment to prominent retailers like Papail and prominent retailers like Amazon. It is the first major, and particularly favorable, Crypto regulation approved by the Congress. Although it still needs to be passed at home, the Crypto advocates are optimistic.
So far, Stabecrims have been mostly used in trading or decentralized finance (DEFI) within the Crypto world. But with this new law, the circle, which is not bound to a single financial institution, is deployed to be a fully larger winner. Some are calling it the “iPhone moment” of the industry.
Circle fever will at least anger, at least until the company posts its first quarter earnings. Only then will investors decide whether the honeymoon continues or not.
Meanwhile, if you want to sound like you know what is happening in the wall street and tech world, then there is a new name to drop.
Who is bitcoin?
