Circle (the issuer of the stablecoin USDC)

Circle was founded in 2013, headquartered in Boston, USA (later moved to New York), co-founded by Jeremy Allaire and Sean Neville. The company initially focused on Bitcoin payments and cross-border transfer services, later transforming into a global leader in stablecoin issuance. On June 5, 2025, Circle went public on the New York Stock Exchange under the ticker symbol 'CRCL', becoming the world's first publicly listed stablecoin company, with its stock price soaring 168% on the first day, and its market value briefly exceeding $38 billion.

Profit Model:

Interest Income: After users deposit USD to exchange for USDC, Circle invests the funds in low-risk assets such as US Treasuries to earn interest rate spreads (accounting for over 99% of income). Interest income is expected to exceed $1.6 billion in 2024.

Financial Services: Providing solutions such as cross-border payments and asset tokenization (RWA) for institutions, including the issuance of tokenized US Treasuries in collaboration with BlackRock.

Market Position and Competitive Advantage

Global Second: The circulation of USDC is approximately $61 billion, accounting for 27% of the stablecoin market share, second only to Tether (USDT).

Personally, I do not recommend buying Circle's stock for several reasons. This stock jumped from $60 to $300 in a short time and then fell back below $200. The entire listing process feels like the launch and lifecycle of a meme coin. Does this sound familiar? Let's analyze the company's revenue composition. First, its profit model is very simple, relying on users depositing USD to exchange for short-term US Treasuries, but this is affected by fluctuations in Federal Reserve interest rates; during tightening cycles, its income will decrease significantly. Additionally, it has to pay half of its distribution fees to Coinbase, meaning its profit model is very one-dimensional, and it reached a high market value in the early stages of listing. Therefore, I do not recommend buying this stock; the high volatility in the future will become its main theme. Institutions have also given a valuation of no more than $80 per share, unless you have substantial practical experience with T, you could try small positions, but I do not recommend this stock for the medium to long term.