Stablecoin firm Circle's shares more than double in NYSE debut

By Arasu Kannagi Basil

(Reuters) -Stablecoin issuer Circle Internet's shares more than tripled in their debut on the New York Stock Exchange on Thursday, a move expected to boost an IPO market that has struggled to regain momentum.

The New York-based company's stock opened for trading at $69 apiece, valuing the stablecoin issuer at nearly $18 billion, on a fully-diluted basis.

The stock rose as much as $103.75 and was halted multiple times for volatility amid frenetic trading.

The successful flotation is likely to encourage other crypto IPO hopefuls eyeing public markets. Surging interest in digital assets amid rising token prices and supportive regulatory developments is expected to spur more listings from the industry.

"The more crypto companies that go public, the easier it will be for future crypto companies," said Matt Kennedy, senior strategist at Renaissance Capital, a provider of IPO-focused research and ETFs.

"The number of deals is important, but so is the variety - having publicly-traded companies across the crypto ecosystem."

Circle and some existing investors raised $1.05 billion in an upsized IPO by selling 34 million shares at $31 apiece, above the marketed range of $27 to $28 each.

"This morning we had Circle going public in what I can only characterize as a blowout deal," said Lynn Martin, president at NYSE Group.

The outlook for the digital asset industry has also brightened with the Trump administration adopting a lighter regulatory touch and moving to establish a crypto-friendly environment.

In recent months, a growing number of companies have also added cryptocurrencies to their balance sheets to capitalize on rising token prices.

The crypto market is changing and evolving significantly. As the rules continue to be refined and clarified, there will be a flood of crypto and crypto-related IPOs, said Ross Carmel, partner at law firm Sichenzia Ross Ference Carmel.

Circle's flotation is the biggest crypto listing since Coinbase's 2021 debut and the first major IPO by a stablecoin issuer. It had earlier attempted to go public through a $9 billion blank-check deal, but the deal fell apart in 2022.

MAINSTREAM ADOPTION

Circle's IPO is also a landmark moment for the stablecoin market, which has been a hot topic since the Trump administration took office.

The passage of the pending stablecoin bill could further accelerate the adoption of the digital tokens and make them more mainstream.

Apart from being used to trade cryptocurrencies, stablecoins are also increasingly used as a form of digital payment.