Core Viewpoint - If USDC becomes the universal circulating base layer of "on-chain dollars," then Circle's story is just beginning [3][44] Group 1: Company Overview - Circle is the issuer of the stablecoin USDC, founded in 2013 in Boston, focusing on fiat currency transfer services [5] - As of March 2023, Circle's USDC stablecoin holds approximately 29% market share [5] - Circle is one of the few pure cryptocurrency companies listed in the U.S., marking the largest cryptocurrency IPO since Coinbase's in 2021 [5][6] Group 2: Regulatory Environment - The regulatory journey for Circle has evolved through three phases: financial innovation with loose regulation (pre-2000), inclusion in banking regulatory frameworks (2020-2022), and the establishment of a systematic regulatory framework for stablecoins (2023-2025) [6][8] - Circle's compliance with regulations is crucial for its long-term operation and market acceptance [8][9] Group 3: Market Position and Ecosystem - USDC is increasingly being adopted in digital asset trading markets, with a growing share of trading volume denominated in USDC [17] - Circle is exploring the use of USDC in traditional exchanges and clearinghouses, indicating potential for broader market integration [19] - Major payment companies like Visa and Mastercard are integrating Circle's stablecoin network into their services, enhancing its utility [22] Group 4: Financial Performance and Business Model - Circle has $60 billion in redeemable dollar funds, corresponding to the issued stablecoins [24] - Since its launch, USDC has facilitated over $25 trillion in on-chain transactions, with a circulation of over $61 billion as of May 2025 [26] - Circle's revenue model primarily relies on investing user deposits in short-term U.S. Treasury bonds, generating approximately $1.6 billion in interest income in 2024 [30][29] Group 5: Strategic Partnerships and Challenges - Circle's historical relationship with Coinbase has been significant, with both companies co-founding the Centre Consortium for USDC [32] - The dissolution of the Centre Consortium in 2023 has led to increased reliance on Coinbase for distribution, impacting Circle's profit margins [32][33] - Circle's high dependency on distribution channels like Coinbase and Binance poses a challenge for its revenue model and profit margins [43] Group 6: Future Outlook - The potential for USDC to become the "on-chain dollar" could redefine Circle's market position and growth trajectory [44] - The overall market capacity for stablecoins is expected to grow significantly, with estimates suggesting a potential increase to $2 trillion in U.S. Treasury holdings [43] - Circle's ability to negotiate better terms with distribution partners and expand its market share will be critical for its future valuation [43]

Investment Rating - The report maintains an "Outperform" rating for the computer industry [2][8]. Core Insights - The report highlights the progress of stablecoin regulations in Europe, the United States, and Hong Kong, indicating a clearer compliance path that could stimulate financial innovation and enhance the value of digital currencies and assets [4]. - Circle's IPO has generated significant demand, with the global stablecoin market projected to reach $1.6 trillion by 2030, driven by regulatory clarity and increased acceptance among financial users [4]. - Stablecoins are expected to evolve from mere transaction mediums to critical financial infrastructure, presenting investment opportunities in the digital currency sector [4]. Summary by Sections Market Performance - The computer industry has shown a performance trend against the CSI 300 index, with fluctuations observed from June 2024 to February 2025 [3]. Related Research - Several related reports are mentioned, focusing on the implications of AI and data analysis in the industry, as well as the financial performance of specific companies [4]. Investment Recommendations - The report suggests focusing on companies involved in stablecoins and Real World Assets (RWA), listing several firms such as Lianlian Digital, Zhong'an Online, and others as potential investment opportunities [4].

Group 1: Circle Internet Group - Circle Internet Group went public on June 5, 2025, under the ticker "CRCL," becoming the first global stablecoin stock, raising $1.1 billion with a share price of $31, up from an initial range of $24 to $26, and saw over 25 times oversubscription [2][3] - On its first trading day, Circle's stock opened 122% higher and closed at $83.23, a 168.48% increase from the IPO price, giving it a market capitalization of $18.356 billion [3] - Circle, founded in 2013, primarily issues two stablecoins: USDC and EUDC, with USDC holding approximately 29% market share as of March 2025 [4] - As of March 31, 2025, Circle reached over 600 million users globally, with total revenue and reserve income of $1.676 billion and a net profit of $156 million for 2024 [5] Group 2: Zhou Li Fu Jewelry - Zhou Li Fu Jewelry passed the Hong Kong Stock Exchange hearing and disclosed its information on June 3, 2025, with CICC and CITIC International as joint sponsors [7] - Established in 2004, Zhou Li Fu operates 4,129 stores across 31 provinces and has four overseas stores, ranking among the top five jewelry brands in China for eight consecutive years [7][8] - The company reported revenues of 3.102 billion yuan, 5.150 billion yuan, and 5.718 billion yuan from 2022 to 2024, with a compound annual growth rate (CAGR) of 35.8%, significantly outpacing the industry average of 2.7% [8] Group 3: 51WORLD - 51WORLD updated its prospectus on May 30, 2025, to continue its listing process on the Hong Kong Stock Exchange, with CICC and Huatai International as joint sponsors [11] - Founded in 2015, 51WORLD focuses on the digital twin industry, offering three core business platforms: 51Aes, 51Sim, and 51Earth, and is the first in the industry to propose a comprehensive digital twin solution [12][13] - The company achieved revenues of 170 million yuan, 256 million yuan, and 287 million yuan from 2022 to 2024, with gross margins of 65.0%, 54.2%, and 51.0% respectively [14] Group 4: Xi Puni - Xi Puni updated its prospectus on June 3, 2025, to advance its listing on the Hong Kong Stock Exchange [17] - Established in 2013, Xi Puni is a designer and manufacturer of precious metal watches, with its flagship brand "HIPINE" being the largest gold watch brand in China, holding a market share of 24.98% [18] - The company reported revenues of 324 million yuan, 445 million yuan, and 457 million yuan from 2022 to 2024 [19] Group 5: Weili Zhibo - Weili Zhibo updated its prospectus on June 4, 2025, aiming to become the first stock in the TCE field in China [21][22] - Founded in 2012, Weili Zhibo focuses on innovative therapies for cancer and autoimmune diseases, with 14 candidate drugs in its pipeline, including a core product in clinical registration [23] - The company secured investments from various institutions and achieved a post-C round valuation of 3.13 billion yuan in 2024 [25]

Core Viewpoint - Circle Internet Group has officially gone public on June 5, 2025, under the ticker "CRCL," marking itself as the world's first publicly traded stablecoin company [2][4]. Group 1: IPO Details - Circle adjusted its IPO price from an initial range of $24 to $26 to $31 per share, increasing the total shares offered from 24 million to 34 million, raising $1.1 billion with over 25 times oversubscription [2]. - On its first trading day, Circle's stock opened 122% higher and peaked at nearly 235%, closing at $83.23, which is a 168.48% increase from the IPO price, giving it a market capitalization of $18.356 billion [2]. Group 2: Company Overview - Founded in 2013, Circle focuses on fiat currency transfer services and issues two stablecoins: USDC (pegged to the US dollar) and EUDC (pegged to the euro), with USDC holding approximately 29% market share as of March 2025 [4]. - Circle's total revenue and reserve income for 2024 were $1.676 billion, with a net profit of $156 million [4]. Group 3: Investment Background - Huaxing Capital's New Economy Fund invested in Circle in 2018, recognizing its technological, compliance, and ecosystem advantages in the stablecoin sector [6]. - Huaxing Capital has been actively investing in blockchain technology and digital assets, with notable investments including the IPO assistance for various tech companies and digital asset firms [6]. Group 4: Industry Outlook - The global regulatory framework for digital currencies is evolving, with many countries incorporating digital currencies into their reserve assets [7]. - Huaxing Capital emphasizes the importance of integrating cutting-edge technology with financial services to enhance financial efficiency and asset liquidity, positioning itself as a leader in the financial innovation landscape [7][8].