Something strange is happening on Wall Street. It is not a late night post from Elon Musk, AI, or Donald Trump. It is a crypto company called Circle Internet Group, and it is realizing the market that the days of dot-com bubble are back.
The circle became public on 5 June. In only eleven trading sessions, its stock exploded from more than 675%unprecedented 675%, giving more than $ 42 billion in its market cap. The company now trades on a valuation that holds it in the same league as Tech Unicorn and AI Moonshots, commanding a price, in which investors are paid, briefly, $ 295 for each of their earnings.
Just a problem. Circle does not have a revolutionary AI. This smooth consumer does not build gadgets. Its business model is shocking simple.
Here’s how it works: you give a dollar to the circle. They give you a digital token, called USDC, is worth the same dollar. They then take your real dollar, investing it in something safe like a short -term American Treasury Bond, and collects interest.
You get tokens. They get benefits. That’s it. That is the entire business.
This has inspired critics to labeled slightly more than a glorious “money rapper”. So why is Wall Street considering it like the next Tesla?
Answer is a word: Stablecoin.
The USDC is a stabechoin, a digital token is judged for a stable property, in this case, the US dollar. The idea is that for each USDC token, a real dollar is sitting in a reserve account. This makes incredibly useful for crypto traders, which require the speed of digital assets without wild instability of bitcoin.
And now, the bulls are betting that Stabecrims are going to go to the mainstream. The Senate has just passed the “Genius Act,” landmark law, which paves the way for banks, papail -like fintech, and even to use stabelcoins to pay to retailers such as Walmart and Amazon. Suddenly, Crypto’s dream became a real option for visa or master card, it seems within access.
Analysts are keeping saliva. City Prediction The StableCoin market can hit $ 3.7 trillion by 2030. In that scenario, circle, as a neutral platform, which is not bound to any single bank, is completely located in cash.
But there is a grip. The high-on-two-rate environment seems so spectacular that the business model is also its biggest weakness.
“The entire business of the circle is truly clinging to the Fed Policy,” a user has written in a viral post on Reddit R/Wallstreetbets. “This is a treasury ETF in a trench coat.”
If the Federal Reserve cuts the rates, the main revenue stream of the circle shrinks. The big players do not even stop the launch of their own looks stabechoin, erasing the shore of the circle overnight. If everyone offers the same thing, then the gap of the circle starts to look very shallow. And yet, Wall Street is stacking as it is the next openi. What if regulators change their tunes? The complete model may be at risk. Business is notable delicate.
When contacted by Gizmodo, a spokesman stated that the company was in a “quiet period” after an IPO, legally banning it from making a promotional statement.
For now, the promotion is winning. Circle’s stock is on fire, fuel from a future promise where we all pay for our coffee with digital dollars. But below the surface, it does not innovate or disrupt $ 50 billion company. It just keeps your cash, gives you a digital receipt, and gives a pocket to interest. And in the bizarre world of finance of 2025, it is clearly to be crowned the new king of Wall Street.
