The stablecoin biz is developing fast
Stablecoin legislation is already having a big impact and neither chamber has even had a floor vote on it yet.
The big picture: Stablecoin projects are coming fast and furious, fueled by expectations of a liquidity wave once the world's biggest economy gives its official nod.
Standard Chartered experts project stablecoins to become a multitrillion-dollar category by 2028 if legislation passes that sanctions the sector.
Context: That's comparable to the entire industry's market cap today.
New entrants will find that stablecoins are a good business as long as interest rates aren't zero. Backed by reserves, usually U.S. Treasuries, they're a great business if rates are high.
But that's a lot of sensitivity to forces outside your control, as Coin Metrics points out in its review of Circle's S-1.
It also helps if your token is really popular, and it turns out that competing for market share is expensive.
New trends are emerging. Some might not be as profitable, and others may not even be permitted out of the gate.
Yield-bearing stablecoins could help attract market share. But they could also chip into an issuer's profits, even when rates are strong. Circle has gotten ahead of the trend by acquiring a coin designed for yield, USYC.
Other products are coming at a steady clip. We've mentioned the $5 billion synthetic dollar, USDE, before, but another such delta-neutral stablecoin with yield built in got seed funding this week, NUSD. (Stablecoin legislation looks likely to forbid those kinds of tokens here — for now.)
Zoom out: There's also more to the stablecoin industry than just issuing the tokens. Startups are forming to build out the use case beyond market liquidity, including companies that use stablecoins for remittances, payroll, cross-border transactions and treasury management.
FalconX, one of the custody firms from the prior item, projects perhaps 50 new entrants to the stablecoin market this year (and the company is in a good position to do better than guess).
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Insider
3 hours ago
- Business Insider
Opening Day: Stablecoin issuer Circle soars in public debut
Shares of Circle jumped almost 170% in their trading debut after the stablecoin company raised about $1.1B in its IPO. The stock opened at $69 after the pure-play crypto company priced its initial public offering at $31 per share. Confident Investing Starts Here: Two other big names are next, with IPOs expected next week. Fintech Chime and space and defense company Voyager Technologies are expected to go public sometime in the week of June 9. Omada Health (OMDA) opened on June 6 at $23. The company that bills itself as 'the virtual between-visit healthcare provider' priced 7.9M shares at $19.00, in the middle of the $18.00-$20.00 range. Circle (CRCL) opened on June 5 at $69.00. The company priced its upsized initial public offering of 34M shares at a public offering price of $31.00 per share. Circle is a financial technology firm that enables businesses 'to harness the power of digital currencies and public blockchains for payments, commerce and financial applications worldwide.' END OF THE WEEK PERFORMANCE: Omada Health – up almost 31% at $24.80. Circle – up about 42% at $117.25. RECENT IPOS TO WATCH: Arrive AI (ARAI), eToro (ETOR), Antalpha (ANTA), and OMS Energy (OMSE) are among stocks that could see new coverage roll out this upcoming week as the quiet periods for banks that underwrote the companies' IPOs expire. Click here to see upcoming IPO calendar on TipRanks. Voyager Technologies filed with the SEC for an initial public offering of shares of Class A common stock. The company said it intends to apply to list its Class A common stock on the New York Stock Exchange under the symbol 'VOYG.' The prospectus states, 'We are an innovation-driven defense technology and space solutions company. Our company was purpose-built to address issues at the forefront of defense, national security and space industries and we have organized our business to reflect this goal. We strive to solve complex challenges to fortify national security, protect critical assets and unlock new frontiers for human progress and economic development. We are committed to developing and delivering an array of transformative, mission-critical solutions to customers enabled by our advanced technology, analytics and space infrastructure capabilities. Our solutions include communications and intelligence collection systems, defense systems, advanced space technology, in-space infrastructure and space mission services. Our business consists of diversified solutions across three business segments: Defense & National Security, Space Solutions and Starlab Space Stations. Since 2019, we have accomplished significant achievements in each of these segments, including the successful deployment of first-of-its-kind missile defense maneuvering capabilities, the development of groundbreaking space technology and the selection by NASA to develop a replacement for the ISS… Since 2019, we have executed and successfully vertically and horizontally integrated seven acquisitions, and have grown our revenue to $144.2 million in 2024 and $34.5 million for the three months ended March 31, 2025.' Strategy (MSTR) announced that, subject to market and other conditions, it intends to conduct an initial public offering registered under the Securities Act of 1933, as amended, of 2.5M shares of Strategy's 10.00% Series A Perpetual Stride Preferred Stock, the ' STRD Stock.' Strategy intends to use the net proceeds from the offering for general corporate purposes, including the acquisition of bitcoin and for working capital. Fitness Champs filed an initial public offering of 2M ordinary shares, with selling shareholders offering an additional 1.75M shares. The company intends to apply to list its shares on the Nasdaq under the symbol 'FCHL.' The company anticipates the initial public offering price will be between $4.00-$5.00 per share. Bancroft Capital is acting as the underwriter. Chime announced that it has filed a registration statement with the Securities and Exchange Commission relating to the proposed initial public offering of its common stock. Chime has applied to list its common stock on the Nasdaq under the ticker symbol 'CHYM.' The number of shares to be offered and the price range for the proposed offering have not yet been determined. Morgan Stanley, Goldman Sachs and J.P. Morgan will act as lead book-running managers for the proposed offering. Barclays will act as an additional book-running manager. Evercore ISI, UBS Investment Bank, Deutsche Bank Securities, Piper Sandler and Wolfe Nomura Alliance will act as bookrunners. William Blair, Canaccord Genuity, Keefe, Bruyette & Woods, First Citizens Capital Securities and Texas Capital Securities will act as co-managers. Chime is a financial technology company. Happy City filed with the SEC for an initial public offering of 1M Class A ordinary shares of Happy City Holdings Limited, representing 14.29% of the Class A ordinary shares following completion of the offering. The company expects the initial public offering price will be between $5.00 and $7.00 per Class A share and notes it has reserved the symbol 'HCHL' for purpose of listing its Class A ordinary shares on the Nasdaq Capital Market. Odyssey Therapeutics has filed with the SEC for an initial public offering of shares of common stock. The company has applied to list its common stock on the Nasdaq Capital Market under the trading symbol 'ODTX.' The prospectus filed with the SEC states, 'Odyssey is a clinical-stage biopharmaceutical company led by a team and board of drug hunters seeking to transform the standard of care for patients suffering from autoimmune and inflammatory diseases… Our most advanced programs include OD-07656, a small molecule scaffolding inhibitor of receptor-interacting protein kinase 2, or RIPK2, for which we intend to commence a Phase 2a monotherapy trial for ulcerative colitis, or UC, in the first quarter of 2025 and a Phase 2a combination trial with vedolizumab in the first half of 2026, and two preclinical programs: a small molecule scaffolding inhibitor of interleukin-1 receptor-associated kinase 4, or IRAK4, and OD-00910, an agonistic protein therapeutic targeting tumor necrosis factor receptor 2, or TNFR2, built from camelid heavy chain variable regions, or VHH, domains.' OTHER IPO NEWS: Dubai party hotel operator FIVE Holdings is considering listing in London or New York, three people with knowledge of the matter said, Reuters' Hadeel Al Sayegh and Federico Maccioni report. The company, which owns the Pacha hotel and nightclub, has been exploring an initial public offering in Dubai, it has said. Chairman and founder Kabir Mulchandani said last year the company was worth up to $3B and was considering a dual listing. He did not name possible locations, the authors note.
Yahoo
3 hours ago
- Yahoo
Circle Shares Soar on NYSE Debut
Circle shares began trading at $69 on Thursday following its debut on the New York Stock Exchange and surged to as much as $100, versus its $31 IPO pricing on Wednesday night. How positive of a sign is this for stablecoin issuers? CoinDesk's Jennifer Sanasie breaks it down on 'Chart of the Day,' presented by Sign in to access your portfolio
Yahoo
4 hours ago
- Yahoo
Weekly Recap: Circle Scores Big on IPO Fever
It was a week of fortunes made, and fortunes lost, at CoinDesk. On the one hand, we had Circle, long a leading crypto company, hurtling to IPO and making bank. Its shares were priced at $110 at press time (up from $31 Wednesday), leading many to expect a summer and fall of crypto-themed IPOs. On the other, we saw HyperLiquid trader James Wynn go from having a $100 million BTC position one day to a massive loss the next. (Kids, beware the big, bad leverage monster). Most of the market portents looked good, though. Crypto money-raising season was in full swing. Groups doubled-down on the Bitcoin Treasury Strategy, not least Metaplanet, Japan's answer to Michael Saylor's Strategy. Solana's memecoin juggernaut, said it was lining up $1 billion at a $4 billion valuation. One of its children, Fartcoin, surged on rumors of a Coinbase listing. Crypto technology continued to get integrated into mainstream products. Prediction markets from Polymarket are coming to X and xAI. Uber, Apple, Airbnb and others said they were hoping to combine stablecoins into their payment offerings. Revolut said it would soon offer derivatives. And so on. Still, Trump and Musk dominated coverage as normal (probably to an unhealthy degree). On Thursday, Trump's media company Truth Social said it would launch its own Bitcoin ETF. (By Friday, it was set to issue more shares as well.) The Trump-Musk feud, which also broke this week, highlighted the U.S.'s precarious debt situation (a key driver for bitcoin's existence). But so far bitcoin, and dogecoin, prices are down on the news. Really anything is possible in the weeks ahead. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
