Circle’s $36bn valuation sets incentive for more stablecoin issuers to go public

Core Insights - Circle, the issuer of USDC, experienced a $482 million loss in Q2, leading to a 15% drop in stock price, yet maintains a valuation of $36 billion, a 115% increase from its public offering price [1] - The demand for stablecoins is driven by Wall Street investors, with predictions of the US dollar stablecoin market reaching $2 trillion in the coming years [2][3] - The recent passage of stablecoin legislation in the US has spurred significant investment in the sector, with startups raising $537 million in 2025, a five-fold increase from 2024 [3] Company Insights - Circle is perceived as a regulated gateway for digital dollars rather than just a blockchain firm, reflecting its high valuation despite financial losses [4][5] - Institutional demand for stablecoin exposure positions Circle as a key player in the financial ecosystem, attracting interest from other issuers looking to enter public markets [4][5] Market Trends - The stablecoin market is witnessing a rush, with smaller firms capitalizing on investor demand, as evidenced by Gemini's oversubscribed IPO, which initially traded 32% above its $28 offering price [6] - Paxos is identified as a potential next candidate for public offering in the stablecoin sector, indicating ongoing interest and growth opportunities [7]