Barclays has taken its first direct step into the stablecoin sector by investing in US-based settlement firm Ubyx, marking a shift in how the British lender is approaching digital money.

The move, as reported by Reuters, comes as global banks cautiously test how blockchain-based payment systems could be integrated into regulated finance.

Rather than issuing a token of its own, Barclays is backing market infrastructure that sits behind stablecoins.

The investment also reflects renewed institutional interest in crypto-linked systems after a sharp rebound in digital asset markets and a more supportive stance from US President Donald Trump toward the sector.

What Ubyx does

Ubyx, launched in 2025, operates as a clearing and settlement layer for stablecoins.

Its core function is to reconcile tokens issued by different stablecoin providers, allowing them to move more smoothly across platforms.

Stablecoins are cryptocurrencies designed to track mainstream currencies on a one-to-one basis, most commonly the dollar.

While they are widely used within crypto trading, their fragmented issuance model has limited broader interoperability.

Ubyx aims to address that fragmentation by acting as a neutral clearing system rather than a token issuer.

Barclays has not disclosed the size or valuation of its stake, but confirmed it is the bank’s first investment in a stablecoin-related company.

Other backers of Ubyx include the venture capital arms of Coinbase and Galaxy Digital, according to PitchBook data.

Why banks are paying attention

Over the past year, banks and financial institutions have revived discussions around stablecoins and tokenised assets.

This renewed momentum has been driven by rising crypto prices and political signals in the US that are perceived as more favourable to the sector.

Stablecoins are increasingly viewed as a potential bridge between traditional finance and blockchain systems, particularly for settlement and cross-border transfers.

Despite this interest, most bank-led blockchain initiatives remain at an early stage. Institutions are still assessing regulatory boundaries, operational risks, and real-world demand.

Barclays has framed its involvement with Ubyx as part of a broader effort to explore tokenised money that remains within existing regulatory frameworks, rather than operating in parallel systems outside them.

Regulatory perimeter focus

A key element of the Barclays-Ubyx relationship is its emphasis on regulation.

The bank has said the collaboration is intended to support the development of tokenised money within the regulatory perimeter.

This approach aligns with how major lenders are positioning themselves in the digital asset space, prioritising compliance and supervisory clarity over speed.

In October, Barclays was among 10 banks, including Goldman Sachs and UBS, that announced a joint initiative to explore issuing a stablecoin linked to G7 currencies.

That project highlighted growing coordination among large banks, even as concrete launches remain some way off.

Stablecoin market context

The stablecoin market has expanded rapidly in recent years.

The sector is dominated by Tether, which has about $187 billion worth of tokens in circulation.

Despite their size, stablecoins are still primarily used for transferring funds within crypto markets rather than for everyday payments or corporate settlement.

By investing in Ubyx, Barclays is targeting the infrastructure that could support wider adoption if stablecoins move beyond their current niche.

The strategy suggests that major banks are preparing for multiple future scenarios, even as the practical use of stablecoins in mainstream finance remains limited for now.

The post Barclays steps into stablecoin infrastructure with Ubyx investment appeared first on CoinJournal.

Barclays steps into stablecoin infrastructure with Ubyx investment

Source: https://coinjournal.net/news/barclays-steps-into-stablecoin-infrastructure-with-ubyx-investment/

Check our Market Overview 

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always conduct your own research (DYOR).

China’s central bank, the People’s Bank of China (PBOC), announced earlier this week that it will allow commercial banks to pay interest on holdings of the digital yuan, also known as the e-CNY.

The new framework is scheduled to take effect on Jan. 1, 2026, and the PBOC Deputy Governor Lu Lei said the change will transform the e-CNY from a form of digital cash into what he described as a “digital deposit currency,” a shift designed to boost user adoption.

China has spent several years piloting the digital yuan across multiple cities and use cases, including retail payments and public services.

However, adoption has been slower than policymakers initially hoped.

Analysts say allowing interest payments could make the e-CNY more competitive with traditional bank deposits and private digital payment platforms, potentially accelerating its use domestically and, over time, in cross-border transactions.

In the United States, the debate centres on how the GENIUS Act’s prohibition on interest should be interpreted and enforced.

The law, which became effective in July, was designed to keep payment stablecoins focused on transactional use rather than savings or investment products.

Banking groups argue that allowing stablecoins to pay yield would blur the line between deposits and crypto assets, potentially threatening financial stability and drawing funds away from regulated banks.

Crypto industry groups strongly disagree.

In a Dec. 18 letter to lawmakers, the Blockchain Association and more than 125 industry participants urged Congress to resist expanding or aggressively enforcing the ban on stablecoin rewards.

The group said claims that stablecoin incentives pose a danger to community banks are not supported by evidence and warned that overly strict rules could push innovation offshore.

The American Bankers Association, in a separate letter sent the same day, called for a firm application of the GENIUS Act.

The group argued that some crypto firms are attempting to circumvent the spirit of the law by offering reward-like incentives that function similarly to interest, potentially undermining traditional banking activities.

Coinbase executive warns China could dethrone the US

A senior executive at Coinbase has warned that the United States could undermine its own position in the future of digital finance if lawmakers prohibit interest-bearing stablecoins, just as China moves to make its central bank digital currency (CBDC) more attractive by allowing it to pay interest.

Faryar Shirzad, Coinbase’s chief policy officer, said this week that restricting rewards on US-issued dollar stablecoins could hand a competitive edge to foreign rivals, particularly China.

Shirzad’s comments come amid growing debate in Washington over the implementation of the recently passed GENIUS Act, which bars US dollar payment stablecoins from paying interest or yield directly to users.

In a post on X, Shirzad argued that global competition over digital money is intensifying.

He pointed to China’s latest policy shift as evidence that incentives matter in driving adoption of new forms of money.

According to Shirzad, the US risks weakening the global role of the dollar if it limits the functionality of dollar-backed stablecoins while other jurisdictions move more aggressively.

Shirzad said the GENIUS Act was intended to ensure that US-regulated, dollar-backed stablecoins become the primary settlement tools in a tokenised global economy.

Mishandling the question of rewards, he warned, could give non-US stablecoins and CBDCs an advantage at a critical moment.

The post China’s move to pay interest on e-CNY sparks US stablecoin debate appeared first on CoinJournal.

China’s move to pay interest on e-CNY sparks US stablecoin debate

Source: https://coinjournal.net/news/chinas-move-to-pay-interest-on-e-cny-sparks-us-stablecoin-debate/

Check our Market Overview

Zelle, the payments processor that is widely used by millions of Americans for instant peer-to-peer (P2P) transfers, will now use stablecoins to power international transactions.

Notably, the move, announced by Zelle’s parent company Early Warning Services, underscores how digital tokens backed by fiat currencies are rapidly reshaping global finance.

Zelle goes global with the stablecoins integration

For years, Zelle has been a staple of domestic banking apps, allowing users to send and receive money in seconds.

Now, Early Warning Services says it will expand that speed and reliability to cross-border transfers using stablecoins.

The initiative aims to make international payments as seamless as Zelle’s domestic ones — faster, cheaper, and more dependable than traditional methods.

“Zelle transformed how Americans send money at home,” said Early Warning CEO Cameron Fowler.

“Now, we’re beginning the work to bring that same level of speed and reliability to Zelle consumers sending money to and from the United States.”

Fowler added that the company is investing where “consumer need, bank capability, and global opportunity intersect.”

Early Warning Services, jointly owned by Bank of America, JPMorgan Chase, Wells Fargo, Capital One, PNC, Truist, and US Bank, said the initiative will be available to all financial institutions in the Zelle Network.

The company, which partners with more than 2,500 banks and credit unions, described the new program as a foundation for “faster and more reliable cross-border money movement.”

Zelle’s move is fueled by regulatory clarity in the US

Zelle’s international expansion comes amid a friendlier regulatory climate for digital assets in the United States.

The US GENIUS Act, signed into law earlier this year, created a federal framework for issuing and overseeing stablecoins.

Early Warning CEO said that with clearer rules, Zelle can innovate “more quickly” and focus on safely scaling its network across borders.

Under the Trump administration, regulators have taken a more accommodating stance toward blockchain-based assets.

That clarity has encouraged not only Zelle’s parent company but also major corporations like Amazon, Meta, and PayPal to explore their own stablecoin projects.

And the timing is right. According to market data from Myriad, the total capitalisation of stablecoins stands at $312 billion and is projected to exceed $360 billion by January 2026.

Standard Chartered recently estimated that stablecoins could shift as much as $1 trillion in deposits away from banks in emerging markets within three years.

In addition, Zelle’s decision also reflects intensifying competition in global payments.

Fintech players such as PayPal, Revolut, and MoneyGram have already built cross-border offerings that appeal to younger, digital-first users.

Traditional remittance providers like Western Union face growing pressure as new technology makes international transfers faster and less expensive.

Despite entering the peer-to-peer space later than Venmo or Cash App, Zelle quickly became a dominant force in domestic payments.

It now processes roughly twice as many daily transactions as Venmo and five times as many as Block’s Cash App.

That scale gives Early Warning Services confidence that its stablecoin-powered model can compete globally, backed by the trust and regulatory credibility of the US banking system.

The post Payment processor Zelle taps stablecoins for cross-border payments appeared first on CoinJournal.

Payment processor Zelle taps stablecoins for cross-border payments

Source: https://coinjournal.net/news/payment-processor-zelle-taps-stablecoins-for-cross-border-payments/

Blockchain firm Ripple has revealed a key development with its long-standing partner SBI Holdings, a leading financial services conglomerate in Japan.

The duo has inked a memorandum of understanding to launch and distribute Ripple USD in Japan.

They will leverage SBI’s certified crypto exchange, SBI VC Trade Co., for the Japanese market to access RLUSD.

The official press release indicates that RLUSD will launch in Japan in early 2026.

The $300B stablecoin market is set to grow into the trillions.

Together with @sbivc_official, we’re bringing $RLUSD to Japan in early 2026, offering users and institutions a trusted, regulated and fully-backed stablecoin built for enterprise use cases. https://t.co/htcrMiQkTe

— Ripple (@Ripple) August 22, 2025

That presents a key step toward enriching financial options available to institutions, retailers, and enterprises that rely on legitimate digital currencies.

Commenting on the integration, SBI VC Trade CEO Tomohiko Kondo stated:

The introduction of RLUSD will not just expand the option of stablecoins in the Japanese market, but is a major step forward in the reliability and convenience of stablecoins in the Japanese market, and an important step in further accelerating the convergence of finance and digital technology.

Stablecoins’ next growth phase

Stablecoins have thrived in 2025, especially after the United States approved the highly anticipated GENIUS law.

Today, these backed digital tokens boast nearly $300 billion in market cap, and experts forecast continued growth, targeting trillions.

While traders interested in price stability fueled the initial wave of stablecoin adoptions, institutional demand and utility appear to drive phase two.

Coinbase has listed World Liberty Financial’s USD1, which has seen explosive growth since its March 2025 launch.

Meanwhile, RLUSD fits there as it prioritizes utility and institutional transactions.

Also, its compliance-first strategy elevated its industry appeal. Ripple publishes attestations from third-party auditors (each month) to guarantee transparency.

Ripple USD boasts unwavering stability, backed by short-term government bonds, US dollar deposits, and other monetary equivalents.

The compliance and transparency set RLUSD ahead of many existing stablecoins.

Ripple Vice President of Stablecoins Jack McDonald emphasized that their collaboration with SBI focuses on building a compliant and trusted financial future. He added:

This distribution in Japan with SBI VC Trade is a culmination of that work. RLUSD is designed to be a true industry standard, providing a reliable and efficient bridge between traditional and decentralized finance. We are confident that this partnership will not only drive stablecoin utility in Japan but also set a new benchmark for the entire market.

RLUSD’s outlook

Ripple’s stablecoin boasts over $666 million in market cap, with a daily volume of $70 million signaling notable user activity.

RLUSD received a vital boost recently after Bullish confirmed using the stablecoin for its successful $1.15 billion initial public offering (IPO) in the US.

Congrats to @Bullish on a successful IPO! 👏

A portion of the IPO proceeds were settled in $RLUSD, minted on the XRP Ledger. This is the first public listing to bring the settlement process onchain and sets a precedent for how stablecoins can shape future listings. https://t.co/AD4AkpPnLD

— Ripple (@Ripple) August 19, 2025

Now, RLUSD braces for the Japan launch in early 2026. Success could boost trust in the stablecoin among institutions, enterprises, and regulators across Asia.

The post Ripple partners with SBI Holdings to distribute RLUSD stablecoin in Japan appeared first on CoinJournal.

Ripple partners with SBI Holdings to distribute RLUSD stablecoin in Japan

Source: https://coinjournal.net/news/ripple-partners-with-sbi-holdings-to-distribute-rlusd-stablecoin-in-japan/

Circle, the issuer of the USDC stablecoin, has announced the launch of its own layer-1 blockchain, Arc, even as it posted strong revenue growth alongside a hefty quarterly loss.

The move marks a major step in the company’s ambition to become a full-stack platform for digital finance, while also highlighting the financial challenges of its first earnings report since going public.

Circle’s Q2 revenue rises, but losses deepen

In its second-quarter 2025 results released Tuesday, Circle reported a 53% year-over-year increase in total revenue and reserve income, reaching $658 million.

The revenue growth was fueled by a surge in USDC adoption, expanding subscription service revenues, and increased activity across decentralised finance platforms.

Despite the revenue jump, Circle posted a $482 million net loss for the quarter.

The company attributed this to one-time, non-cash expenses linked to its blockbuster IPO earlier this year, including $424 million in stock-based compensation and a $167 million revaluation of convertible debt.

Adjusted EBITDA rose 52% to $126 million, showing operational strength despite the headline loss.

Arc Blockchain aims to redefine stablecoin finance

The company’s newly announced Arc blockchain will be compatible with the Ethereum Virtual Machine (EVM) and use USDC as its native gas token.

This means users will be able to pay transaction fees directly with the stablecoin, a move aimed at streamlining on-chain payments and lowering friction for institutional and retail users.

Arc is designed for high-performance financial applications, with sub-second settlement, an integrated stablecoin foreign exchange engine, and opt-in privacy controls.

Circle says the network will be fully integrated into its existing platform while remaining interoperable with the 24 other partner blockchains where USDC already operates.

USDC stablecoin market share keeps climbing

USDC’s market capitalisation stood at $65.6 billion at the time of the announcement, with $42.6 billion of that supply on Ethereum, according to a recent report by Circle.

Circle has revealed that USDC circulation grew 90% year-over-year to $61.3 billion by the end of Q2 and has since climbed further to $65.2 billion as of August 10.

We just reported our Q2 2025 earnings, our first as a publicly traded company.

USDC in circulation reached $61.3B at the end of Q2, up 90% YoY, with $5.9T in onchain volume during Q2.

Read the results here: https://t.co/a6fwiWoTNK pic.twitter.com/lgTOOTIEAq

— Circle (@circle) August 12, 2025

Adding to this momentum, Whale Alert recently flagged a $250 million USDC mint at the USDC Treasury.

Such large-scale issuance often points to increasing demand from both institutions and retail investors, injecting liquidity into exchanges and DeFi protocols.

This influx of capital can serve as a catalyst for trading activity and broader market growth.

Circle’s strategic positioning in a competitive sector

By launching Arc, Circle is positioning itself to capture more of the stablecoin-powered payments and capital markets segment.

The combination of its growing USDC supply and an in-house blockchain tailored for financial use cases could strengthen its influence in the global digital asset ecosystem.

The expansion also underscores Circle’s long-term bet that stablecoins will become a backbone of international finance.

With clear regulatory momentum in key jurisdictions and growing adoption of digital dollars, the company is seeking to leverage its brand trust and market presence into a deeper role in global transactions.

However, the sizable Q2 loss serves as a reminder of the costs of scaling in a competitive and highly regulated industry.

As Arc heads toward public testnet later this year, traders and institutions will be watching closely to see whether Circle can turn its strong revenue growth into sustained profitability, while cementing USDC’s position at the heart of digital finance.

The post Circle unveils Arc Blockchain amid 53% revenue surge, $482M Q2 loss appeared first on CoinJournal.

Circle unveils Arc Blockchain amid 53% revenue surge, $482M Q2 loss

Source: https://coinjournal.net/news/circle-unveils-arc-blockchain-amid-53-revenue-surge-482m-q2-loss/

Ripple has appointed the Bank of New York Mellon (BNY Mellon) as the primary custodian for reserves backing its US dollar-pegged stablecoin, RLUSD.

The partnership, announced Wednesday, aims to strengthen regulatory compliance and institutional credibility for Ripple and its stablecoin product.

BNY Mellon, the oldest bank in the United States and a major provider of financial services to institutional clients, will facilitate the movement of reserve assets and cash to support RLUSD conversions.

The arrangement marks a significant development in Ripple’s stablecoin strategy, which launched in December 2024.

“As primary custodian, we are thrilled to support the growth and adoption of RLUSD,” said Emily Portney, global head of asset servicing at BNY. “We are proud to be working closely with Ripple to continue propelling the future of the financial system.”

Institutional interest signals “Stablecoin Summer”

The collaboration between Ripple and BNY Mellon reflects a broader trend of traditional financial institutions entering the stablecoin space.

This wave of engagement, dubbed “stablecoin summer” by CNBC, is gaining momentum amid shifting regulatory dynamics in the US.

The Trump administration is rolling back restrictive crypto policies from the Biden era, while the Senate recently passed the GENIUS Act to set guardrails for US dollar-pegged stablecoins.

This regulatory clarity is attracting major corporate players. Amazon and Walmart are said to be exploring stablecoin initiatives, while companies such as Uber, Apple, and Airbnb are also reportedly assessing similar possibilities.

Stablecoins, which are digital tokens pegged to assets like the US dollar, aim to combine the speed and efficiency of blockchain networks with the price stability of fiat currencies.

Their growing appeal among institutions underscores their perceived utility in modernizing financial infrastructure.

Ripple Eyes US banking charter, federal reserve access

In addition to securing BNY Mellon as a custodian, Ripple recently applied for a US national banking charter and a Federal Reserve master account.

If approved, this would enable Ripple to hold RLUSD reserves directly with the central bank and integrate more deeply into the US payments system.

Ripple, founded 13 years ago, is best known for its cross-border payments platform serving banks, payment providers, and other financial institutions.

While its operations are largely international, the RLUSD launch represents a strategic move to expand its US footprint.

BNY Mellon’s involvement in crypto dates back to 2021, when it established a digital assets unit focused on servicing bitcoin and other cryptocurrencies.

The bank’s custodial partnership with Ripple is its latest step in supporting the broader digital assets ecosystem.

The post BNY Mellon to custody Ripple’s stablecoin reserves appeared first on CoinJournal.

BNY Mellon to custody Ripple’s stablecoin reserves

Source: https://coinjournal.net/news/bny-mellon-to-custody-ripples-stablecoin-reserves/

Chainlink’s native token, LINK, soared 11% today, buoyed by a groundbreaking partnership with Mastercard.

While gains mirrored broader crypto market upside, the news that Chainlink and Mastercard are looking to bring direct crypto purchases to over 3 billion cardholders added to the upbeat sentiment around LINK.

Chainlink and Mastercard partner

As with many other similar collaborations, this one between Chainlink and Mastercard marks a significant step toward mainstream adoption of decentralised finance (DeFi).

We’re excited to announce that Chainlink and @Mastercard have partnered to enable billions of cardholders to purchase crypto directly onchain.https://t.co/1pKz03jQ7t

Chainlink verifies and synchronizes key… pic.twitter.com/5jfLAAYn4D

— Chainlink (@chainlink) June 24, 2025

The two companies said in a press release that their integration looks to bridge traditional finance with blockchain technology. Chainlink’s infrastructure will play a pivotal role in this transformative integration.

Other than leveraging Chainlink’s interoperability protocol and data standards, the partnership will also tap into key platforms and protocols, including zerohash, Shift4 Payments, and XSwap.

“There’s no doubt about it – people want to be able to easily connect to the digital assets ecosystem, and vice versa. That’s why we continue to leverage our proven expertise and global payments network to bridge the gap between onchain commerce and offchain transactions,” said Raj Dhamodharan, executive vice president, Blockchain & Digital Assets at Mastercard. “In coming together with Chainlink, we’re unlocking a secure and innovative way to revolutionise onchain commerce and drive the broader adoption of crypto assets.”

LINK price gains

As noted, Chainlink’s price experienced a robust 11% surge in 24 hours, climbing from a low of $11.48. This aligned with crypto’s bounce on Israel-Iran ceasefire news and also reflected strong market enthusiasm for the Mastercard partnership.

As of writing, LINK was trading at $13.07, with bulls looking to break towards $20.

The partnership’s announcement and broader market tailwinds, including the recently passed GENIUS Act, could catalyse gains.

Indeed, Chainlink co-founder Sergey Nazarov recently noted that the US stablecoin law could boost LINK adoption by supporting stablecoin innovation.

“This is the type of traditional finance and decentralised finance convergence that Chainlink was built to make possible,” Nazarov noted. “I’m excited about Chainlink’s ability to enable this critical connection between the traditional payments world and the over three billion cardholders in the Mastercard user base, directly into the next generation trading environments of onchain decentralised exchanges.”

Solutions like Chainlink’s Cross-Chain Interoperability Protocol (CCIP) and proof-of-reserve technology are seen as critical for tokenised assets, and could potentially drive LINK price higher.

The post Chainlink price jumps 11% amid major Mastercard partnership appeared first on CoinJournal.

Chainlink price jumps 11% amid major Mastercard partnership

Source: https://coinjournal.net/news/chainlink-price-jumps-11-amid-major-mastercard-partnership/

The Aptos blockchain, a leading Layer-1 platform, has seen its native token, APT, experience a significant price surge. As Bitcoin recovered to above $106k, APT price climbed nearly 17% in the past 24 hours to highs of $5.07. Trading volume increased 189% to $643 million.

The uptick in APT price coincides with the platform’s stablecoin supply approaching an all-time high of approximately $1.2 billion, reflecting growing adoption and liquidity within the Aptos ecosystem.

According to industry analysts, the surge in stablecoin supply highlights Apts’ increasing prominence in decentralized finance (DeFi).

Aptos stablecoin supply nears $1.2 billion

While overall market sentiment has played a part in Aptos token’s bounce, network related growth appears to a main catalyst.

Per details shared by Token Terminal, Aptos’ stablecoin supply has grown from $430 million in December 2024 to near the all-time high of $1.2 billion.

The metric last reached this milestone in May 2025, signaling robust network activity. Leading stablecoins Tether (USDT) and USDC (USDC) have driven this surge in liquidity.

ICYMI: Stablecoin supply on @Aptos is close to all-time highs at ~$1.2 billion. Average transaction fee on Aptos hovers around ~$0.0005. pic.twitter.com/NENHThCzFg

— Token Terminal 📊 (@tokenterminal) June 24, 2025

Notable gains for APT have also come after Wyoming picked Aptos’ blockchain for the state’s WYST stablecoin pilot.

This momentum suggests potential for further price gains if adoption continues, which also ties in with the latest Aptos related news.

Meanwhile, the average transaction fee on Aptos has fallen to around $.0.0005.

Jump Crypto and Aptos Labs to launch Shelby

Adding to the bullish sentiment, Aptos Labs, in collaboration with Jump Crypto, have announced the upcoming launch of Shelby, a decentralized hot-storage protocol designed for high-frequency web3 workloads.

Announced on June 24, 2025, Shelby leverages Aptos’ 600ms finality and ultra-low gas fees to offer cloud-speed storage for applications like streaming video, AI pipelines, and DePIN feeds.

Web3 wasn’t meant to run on Web2 infrastructure. Its potential to create value through data has been throttled. That ends now.@ShelbyServes is a decentralized hot storage protocol, designed to serve real-time data, and reward it.

✅ Sub-second access over dedicated fiber
✅… https://t.co/8LQbz9dlsB

— Aptos Labs (@AptosLabs) June 24, 2025

The protocol is chain-agnostic, with planned support for Ethereum and Solana, and has attracted early interest from brands like Metaplex and Story Protocol.

According to Aptos Labs’ X account, Shelby aims to deliver web2 performance with web3 transparency, positioning Aptos as a leader in scalable infrastructure.

“Web3 wasn’t meant to run on Web2 infrastructure. Its potential to create value through data has been throttled. That ends now. ShelbyServes is a decentralized hot storage protocol, designed to serve real-time data, and reward it,” Aptos Labs wrote.

Shelby’s potential to drive cross-chain adoption could be crucial to Aptos, with a developer-focused devnet slated for Q4 2025.

The post Aptos price surges as stablecoin supply nears all-time appeared first on CoinJournal.

Aptos price surges as stablecoin supply nears all-time

Source: https://coinjournal.net/news/aptos-price-surges-as-stablecoin-supply-nears-all-time/

This strong market reception is being interpreted as a significant indicator of the increasing acceptance and perceived legitimacy of stablecoin issuers within the broader financial landscape.

The stablecoin firm, along with some of its existing shareholders including co-founder and Chief Executive Officer Jeremy Allaire, sold a total of 34 million shares on Wednesday at a price of $31 each, according to a statement confirming an earlier Bloomberg News report.

This pricing gives Circle a market valuation of approximately $6.9 billion based on the outstanding shares detailed in its regulatory filings.

When accounting for employee stock options, restricted share units, and warrants, the company’s fully diluted valuation reaches about $8.1 billion.

The offering’s success was underscored by significant investor interest.

The upsized deal reportedly fielded demand for more than 25 times the number of shares available by the time orders closed on Tuesday, according to people familiar with the matter.

This overwhelming demand prompted Circle to increase the size and price of its IPO earlier in the week.

On Monday, the target for the offering was raised to 32 million shares at a price range of $27 to $28 per share, a notable increase from the initial plan to sell 24 million shares within a $24 to $26 price range, as indicated in its earlier filings.

In the final tally, Circle itself sold 14.8 million shares in the IPO, while the selling shareholders divested the remaining 19.2 million shares.

Regulatory tailwinds and growing institutional interest

Circle’s successful public offering comes at a pivotal time for stablecoins – digital tokens typically pegged to a fiat currency like the US dollar.

Legislation currently before the US Congress aims to regulate these assets, a development that many believe will confer greater legitimacy upon them and potentially pave the way for broader adoption.

However, this evolving regulatory landscape may also attract new and formidable competitors.

The Wall Street Journal reported last month that some of Wall Street’s largest banks are jointly exploring the possibility of issuing their own stablecoins.

Circle’s flagship product, USDC, held approximately 29% of the stablecoin market as of the end of March, according to data from CoinMarketCap cited in the company’s filing.

As of May 29, there was about $61 billion worth of USDC in circulation, according to information on Circle’s website.

The IPO has attracted notable institutional investors. ARK Investment Management, the technology-focused investment firm founded by Cathie Wood, expressed interest in purchasing as much as $150 million worth of shares in Circle’s IPO, according to the filing.

Furthermore, BlackRock Inc., the world’s largest asset manager, reportedly plans to acquire about 10% of the IPO shares, people familiar with the matter have said.

This interest is particularly significant given BlackRock’s existing relationship with Circle; BlackRock manages a government money market fund on Circle’s behalf, which holds 90% of the reserves backing its USDC stablecoin.

The Circle Reserve Fund reportedly had a balance of $53.3 billion as of May 29.

Circle’s journey to public markets

This IPO marks a significant milestone in Circle’s journey.

The company was valued at $7.7 billion after a funding round in 2022, according to data provider PitchBook.

Circle had initially filed confidentially for a listing in early 2024, more than a year after it had abandoned a previous attempt to go public through a merger with a blank-check company (SPAC).

That earlier SPAC deal would have valued the company at $9 billion.

The current IPO is being led by a consortium of Wall Street giants, including JPMorgan Chase & Co., Citigroup Inc., and Goldman Sachs Group Inc.

Circle’s shares are expected to begin trading on Thursday on the New York Stock Exchange under the ticker symbol CRCL.

The post Circle raises $1.1 billion in upsized IPO, prices shares at $31 appeared first on CoinJournal.

Circle raises $1.1 billion in upsized IPO, prices shares at $31

Source: https://coinjournal.net/news/circle-raises-1-1-billion-in-upsized-ipo-prices-shares-at-31/