The US Office of the Comptroller of the Currency has opened the doors of the federal banking system to a new wave of digital-asset firms, clearing five crypto companies, including Circle and Ripple, to launch national trust banks. Key Takeaways: The OCC has conditionally approved five crypto firms, including Circle and Ripple, to launch national trust banks. The charters give digital-asset companies a single federal rulebook instead of navigating state-by-state regulations. Paxos is cleared to issue ...

Cryptocurrency exchange Bybit and stablecoin issuer Circle have announced a strategic partnership that will see the two firms collaborate to expand USDC services across the Bybit stack. According to a Dec. 8 press release, the partnership will focus on enhancing USDC liquidity across spot and derivatives markets, extending existing fiat-to-crypto on/off-ramps, and expanding USDC integration throughout Bybit platform services such as Bybit Card, Bybit Earn, and Bybit Savings. Jeremy Allaire, Chairman, Co-f ...

Group 1 - Circle Internet Group's shares fell 12.9% this week, reaching new lows after its IPO earlier this year, influenced by a broader decline in the cryptocurrency market and falling Bitcoin prices [1] - Bitcoin's price has decreased by 20% over the last month, currently trading at $85,000, which negatively impacts the sentiment around cryptocurrencies [2] - Despite the negative sentiment, Circle operates as a stablecoin issuer with its USDC currency pegged to the U.S. dollar, aiming to increase its use in payments and personal finance [3] Group 2 - In the last quarter, USDC in circulation grew 108% year-over-year to $73.7 billion, with Circle generating revenue of $292 million, a 55% increase, and achieving a net income of $153 million [4] - Circle's business model resembles that of a bank, investing in interest-earning assets like U.S. Treasury bonds, which contributes to its profitability [4] - The stock is considered potentially undervalued, trading at a market cap of $17 billion with a P/E ratio of 28, while annualizing its net income suggests over $600 million in earnings power [7]

Core Viewpoint - The recent surge in gold prices is attributed to Tether's significant accumulation of gold, which has tightened supply and contributed to the price rally, rather than traditional market drivers [1]. Group 1: Tether's Gold Accumulation - Tether has reportedly aimed to purchase around 100 tons of gold in 2023, following meetings with miners and royalty firms [2]. - Analysts estimate Tether held at least 116 tons of gold by the end of Q3 2023, with 12 tons backing its XAUt token and approximately 104 tons backing USDT, making it the largest non-sovereign holder of gold [3]. - The pace of Tether's gold accumulation was notable, with around 26 tons acquired in Q3 2023, representing about 2% of global demand [4]. Group 2: Future Projections and Strategies - Tether is expected to continue its gold accumulation as USDT grows, maintaining gold at about 7% of its reserves, with potential annual additions of nearly 60 tons based on projected profits [5]. - Tether has invested over $300 million into royalty and streaming companies in the gold sector, indicating a broader strategy in the metals market [6]. - The hiring of two top metals traders from HSBC suggests an acceleration in Tether's gold investment strategy [6].

Group 1: Company Performance - Advanced Micro Devices (AMD) shares surged 9% after the chipmaker issued upbeat targets at its first analyst day [1] - On Holding (ONON) shares jumped 20% following better-than-expected results and a raised full-year outlook for the third consecutive quarter [2] - International Business Machines (IBM) shares gained about 2% after announcing several quantum-computing breakthroughs [2] - Paramount Skydance (PSKY) was the worst-performing stock in the S&P 500 with a 6.5% decline after a previous surge of nearly 10% [3] - AppLovin (APP) shares registered a further decline of 1.5% after a nearly 9% drop the previous day [3] Group 2: Market Trends - Major U.S. equities indexes were mixed, with the Dow Jones Industrial Average reaching a record high while the Nasdaq and S&P 500 were lower [1] - Oil futures sank more than 3%, while gold futures advanced nearly 2% [4] - The yield on the 10-year Treasury note fell, and the U.S. dollar rose against the pound and yen but slipped against the euro [4]

Core Insights - The stablecoin issuer reported better-than-expected earnings and revenue, indicating strong financial performance [1] - Despite the positive earnings report, the company raised its forecast for operating costs, suggesting potential challenges ahead [1] Financial Performance - The company achieved earnings that surpassed market expectations, reflecting effective management and operational efficiency [1] - Revenue figures also exceeded forecasts, highlighting robust demand for its stablecoin products [1] Cost Management - The increase in the forecast for operating costs may indicate rising expenses related to compliance, technology, or market expansion efforts [1] - This adjustment in cost expectations could impact future profitability if not managed effectively [1]

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]

Company Overview - Circle Internet Group (NYSE:CRCL) had a successful IPO, with the stock initially priced at $31 per share, opening at $69, and currently trading at $115, marking a nearly 270% increase in a few days [2] - Circle is a stablecoin issuer known for USDC, a dollar-pegged stablecoin used in cryptocurrency trading, payments, and decentralized finance [2][3] Market Dynamics - Stablecoins are gaining traction due to their programmability, transparency, and price stability, making them suitable for various applications [3] - Circle generates revenue primarily from interest on reserves and increasing stablecoin volumes, with potential benefits from upcoming regulatory clarity in the U.S. [3] - Major companies are exploring stablecoins for remittances, B2B payments, and e-commerce due to their speed and lower costs [3] Financial Performance - Circle's revenue for the fiscal year ending March 2025 was $1.89 billion, with profits around $172 million [5] - The company's valuation surged from a $7 billion IPO target to over $27 billion, indicating potential overvaluation [4][5] Risks and Volatility - Circle's performance is closely tied to the broader cryptocurrency market, with demand for stablecoins fluctuating based on market sentiment [4] - Regulatory scrutiny on stablecoins could impact Circle's stock, especially as the market approaches a peak [3][4] - Historical volatility in the sector is evident, as seen with Coinbase's stock, which experienced a 90% drop from its all-time highs [5]