Latest news with #digitalcurrency


Globe and Mail
17 hours ago
- Business
- Globe and Mail
Circle Internet Drops 6% in a Month: Buy, Sell or Hold the Stock?
Circle Internet Group CRCL shares have dropped 5.7% in the past month, underperforming both the Zacks Financial-Miscellaneous Services industry and Zacks Finance sector, which have returned 5.2% and 1.4%, respectively. Circle offers USDC, which is redeemable on a one-for-one basis for US dollars. USDC, along with EURC, are digital currency tokens issued natively on blockchain networks and backed by reserves consisting of highly liquid, price-stable cash and cash equivalents. Both USDC and EURC are used for payments, settlements, and as a digital dollar store of value. Circle stablecoin network is used by more than 600 million users globally as of March 28, 2025. However, the company faces stiff competition from established companies including Coinbase COIN, PayPal PYPL and Fiserv FI. Coinbase has inked a deal with Shopify that will allow consumers to pay with USDC on Base (Coinbase Ethereum layer-2 network) through Shopify Payments, bringing onchain payments to millions of storefronts. Meanwhile, Fiserv's plan to roll out a new blockchain-based digital asset platform based on a U.S. dollar-pegged stablecoin called FIUSD has been a noteworthy development. Circle shares have underperformed its closest peers, including Coinbase and PayPal, but outperformed Fiserv over the past month. While Coinbase shares jumped 10.7%, PayPal and Fiserv fell 5.1% and 17.5%, respectively. CRCL Stock's Performance Image Source: Zacks Investment Research Circle Benefits From Growing Stablecoin Usage Since its launch in 2018, USDC has been used for more than $25 trillion in onchain transactions as of March 28, 2025. According to CoinMarketCap, USDC is the second-largest stablecoin as measured by the amount of stablecoins in circulation, with a 24% share of the stablecoin market as of Dec. 31, 2024. Improving regulatory environment, including the passage of the GENIUS Act on July 17, provides a legal background to stablecoins like USDC. This bodes well for Circle, which has minted more than $504.3 billion of USDC and redeemed more than $464.4 billion of USDC from Jan. 1, 2021, to Dec. 31, 2024. In 2024, Circle reported revenues of $1.7 billion, adjusted EBITDA of $285 million and net income of $156 million. The company had total liquidity of $1.045 billion as of Dec. 31, 2024. CRCL's Sales Estimate Circle serves its clients through Circle Mint, which is available only to institutions (exchanges, institutional traders, wallet providers, banks, and consumer apps companies). The service is expected to benefit from growing demand for stablecoins. Circle Mint supports international wires and domestic bank transfers in more than 185 countries. As of Dec. 31, 2024, there were 1,819 Circle Mint customers with accounts. Circle liquidity services provide institutional minting, reserving, redemption, and foreign exchange services for Circle stablecoins. Moreover, Circle Wallets are gaining traction as more than 11,000 developers have engaged with the product, deploying almost 10 million wallets onchain. Circle Wallet is now used by Grab Networks, a leading superapp in Southeast Asia. USYC Infusion to Boost CRCL's Clientele The acquisition of Hashnote and its TMMF, USYC, which is a tokenized product, is noteworthy as Circle's plan to integrate USYC into the Circle stablecoin network. Unlike payment stablecoins that offer no yield, USYC offers yield to the token holders that is generated from its invested assets, consisting primarily of reverse repurchase agreements on U.S. government and government-backed securities and short-term U.S. Treasury securities. Circle's plan will enable eligible customers to move between the non-yield bearing Circle payment stablecoins and USYC at the settlement speed of the blockchain. Earnings Estimates Revision Shows Mix Trend for CRCL For second-quarter 2025, the Zacks Consensus Estimate for CRCL's earnings has increased by a penny to 29 cents per share over the past 30 days. For 2025, the Zacks Consensus Estimate for Circle's earnings has declined 11 cents to $1.10 per share over the past 30 days. Conclusion Although improving regulatory environment and growing demand for stablecoins are noteworthy, Circle shares are overvalued, as suggested by the Value Score of F, which is risky for investors. Circle currently has a Zacks Rank #3 (Hold), which implies that investors should wait for a better entry point to accumulate the stock. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. #1 Semiconductor Stock to Buy (Not NVDA) The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow. One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be. See This Stock Now for Free >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Fiserv, Inc. (FI): Free Stock Analysis Report PayPal Holdings, Inc. (PYPL): Free Stock Analysis Report Coinbase Global, Inc. (COIN): Free Stock Analysis Report


Forbes
a day ago
- Business
- Forbes
HongShan-Backed Hong Kong Fintech Startup Raises $40 Million To Advance Stablecoin Plan
Norman Chan, founding chairman of RD Technologies. Anthony Kwan/Bloomberg RD Technologies, a Hong Kong-based fintech startup founded by the former chief executive of the city's de facto central bank, said on Wednesday it has raised about $40 million from investors amid its pursuit of a local stablecoin issuer license. The Series A2 round was led by ZA Global, part of mainland Chinese insurer ZhongAn Online P&C Insurance that operates a Hong Kong digital bank, Chinese investment firms China Harbour International Finance and Bright Venture Capital, as well as U.S. digital asset-focused fund Hivemind Capital Partners. Other investors who joined the round include HSG (HongShan Capital Group) and the private equity fund of Chinese state-backed brokerage Guotai Junan International. RD Technologies said the fresh funding will support the company to 'drive the next phase of digital currency transactions and asset tokenization through secure, enterprise-grade infrastructure.' As part of the financing, the startup also agreed to partner with ZA Bank, the virtual bank subsidiary of ZA Global, to explore stablecoin applications in financial services such as reserve asset custody. RD Technologies was founded in 2020 by Norman Chan, who served as chief executive of the Hong Kong Monetary Authority (HKMA) from 2009 to 2019 and the former Asia vice chairman of Standard Chartered Bank. It's currently led by Rita Liu, the former CEO of Alipay's U.K. unit. The startup operates a mobile wallet for enterprises, which allows domestic and cross-border payment as well as foreign exchange of multiple fiat currencies. Its most recent fundraising was in September 2024, when it raised $7.8 million in a Series A1 round from investors including HSG, Hivemind Capital and Aptos Labs, a U.S. blockchain startup founded by ex-Meta employees who worked on the social media giant's failed Diem stablecoin project. RD Technologies' latest funding round comes as the startup plans to apply for a stablecoin issuer license in Hong Kong. Starting August 1, the city will impose a new stablecoin regulation, which requires issuers of such fiat-pegged cryptocurrencies to obtain a license from the HKMA. More than 50 companies, including Chinese billionaire Jack Ma-backed Ant International and e-commerce giant have reportedly expressed interest in applying for such a license. To boost its chance of success, RD Technologies last year joined the HKMA's stablecoin regulatory sandbox scheme to test the cryptocurrency in applications such as cross-border payments and settlements. Hong Kong's move to regulate stablecoins, coupled with Bitcoin hitting a record high of $123,000 in July, has reignited investor interest in the crypto sector. Several digital asset-related stocks listed in Hong Kong have surged in recent months. Among them are Guotai Junan International, which skyrocketed more than 400% after the brokerage said it obtained regulatory approval to offer crypto trading services in Hong Kong in June, and ZhongAn Online P&C Insurance, which soared nearly 70% since Hong Kong announced the passage of the stablecoin bill in May, as investors sought to capitalize on its investment in RD Technologies. MORE FROM FORBES Forbes HongShan Joins $7.8 Million Funding Round Of Hong Kong Fintech Startup RD Technologies By Zinnia Lee Forbes Hong Kong Crypto Unicorn Hashkey Secures $30 Million From Early PDD Investor Gaorong By Zinnia Lee Forbes Hong Kong Crypto Exchange Hashkey Hits Unicorn Status With $100 Million Funding Round By Zinnia Lee
Yahoo
5 days ago
- Business
- Yahoo
Voices: Governor Bailey is wrong: We should embrace the digital pound
Is the digital pound dead in the water? More than 100 countries are looking at the creation of their very own digital currencies. China already has one. The EU is developing a digital euro at pace. But the Bank of England? It seems to be tacking the opposite way to the rest of the world. Andrew Bailey told MPs on the Treasury Committee that he would need 'a lot of convincing' to greenlight a launch, which the Bank has already said couldn't happen until sometime in the 'second half of the current decade' anyway. Is this an opportunity missed? Even a case where the governor's conservatism threatens to leave Britons in the digital dark ages? First off, I should explain what the digital pound actually is. Digi-pounds (that's not the official name; I'm not sure we have one yet) would be currency issued by the Bank that could be stored in a digital wallet provided by a company like, say, Apple. This would allow you to pay for things directly, without the need for the card you currently have to be set up to use Apple Pay. People could also pay you by the same means. PS, Apple CEO Tim Cook isn't paying either me or The Independent for the mention. I'm using Apple Pay as an example because it's a service I use. Bailey is distinctly unimpressed with the idea of this new form of money. His preferred option is to help the market improve digital payment tech, which he said could deliver 'huge benefits'. Fraud reduction, lower costs, faster payments to SMEs (small to medium-sized enterprises), which at this point are probably saying chance would be a fine thing. 'That's a sensible place to do it because that's where most of our money is," the governor opined. But here's an idea: why not simply do both? Is that really so hard? Or is the Bank yet again in 'can't do' mode? It is true that there are legitimate concerns about digital currencies. Sceptics worry about vulnerability to hacking. Fears have also been expressed about their making it easier to launder money, even to facilitate terrorist financing. Criminals took up Bitcoin with alacrity. Lately, they have favoured so-called 'stablecoins', the value of which are linked to an underlying commodity or an existing currency such as the dollar. On the flip side, some critics have voiced fears about digital currencies being used to facilitate government snooping. This has been a big concern with the Chinese version given the obsessive interest in what its citizens do, say and even think of that country's government. But every new technology comes with pluses and minuses. It would be better for Bailey to accept that and roll with the punches. Bitcoin and its ilk already have a legion of fans in this country. If people like the concept of central bank-issued digital currencies, there would theoretically be nothing to stop them from using digital euros if and when they arrive. There are already outlets in London that accept the paper equivalent (and dollars and yen while we're at it). Here's a potential selling point for your business: 'We accept the digital euros!' Right now, the central bank looks flat-footed, a very obvious laggard, largely thanks to the conservatism of the governor. I suspect some of Bailey's caution can be traced back to his time at the head of the Financial Conduct Authority – a fairly thankless, if well remunerated, task at the best of times. Its CEO tends to get the blame for everything and the credit for nothing. Launching a new form of money is bound to create challenges, and it will once again be Bailey's head on the block if something goes wrong. There have lately been suggestions that the Bank could cease or at least shelve the work it has been doing on a digital pound. That would be a mistake. Digital currencies are coming. The Bank should accept that and prepare for the future. The governor badly needs to pull his legs out of the mud in which they're stuck. 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


The Independent
5 days ago
- Business
- The Independent
Governor Bailey is wrong: We should embrace the digital pound
Is the digital pound dead in the water? More than 100 countries are looking at the creation of their very own digital currencies. China already has one. The EU is developing a digital euro at pace. But the Bank of England? It seems to be tacking the opposite way to the rest of the world. Andrew Bailey told MPs on the Treasury Committee that he would need 'a lot of convincing' to greenlight a launch, which the Bank has already said couldn't happen until sometime in the 'second half of the current decade' anyway. Is this an opportunity missed? Even a case where the governor's conservatism threatens to leave Britons in the digital dark ages? First off, I should explain what the digital pound actually is. Digi-pounds (that's not the official name; I'm not sure we have one yet) would be currency issued by the Bank that could be stored in a digital wallet provided by a company like, say, Apple. This would allow you to pay for things directly, without the need for the card you currently have to have set up to use Apple Pay. People could also pay you by the same means. PS, Apple CEO Tim Cook isn't paying either me or The Independent for the mention. I'm using Apple Pay as an example because it's a service I use. Bailey is distinctly unimpressed with the idea of this new form of money. His preferred option is to help the market improve digital payment tech, which he said could deliver 'huge benefits'. Fraud reduction, lower costs, faster payments to SMEs, which at this point are probably saying chance would be a fine thing. "That's a sensible place to do it because that's where most of our money is," the governor opined. But here's an idea: why not simply do both? Is that really so hard? Or is the Bank yet again in 'can't do' mode? It is true that there are legitimate concerns about digital currencies. Sceptics worry about vulnerability to hacking. Fears have also been expressed about their making it easier to launder money, even to facilitate terrorist financing. Criminals took up Bitcoin with alacrity. Lately, they have favoured so-called ' stablecoins ', the value of which are linked to an underlying commodity or an existing currency such as the dollar. On the flip side, some critics have voiced fears about digital currencies being used to facilitate government snooping. This has been a big concern with the Chinese version given the obsessive interest in what its citizens do, say and even think of that country's government. But every new technology comes with pluses and minuses. It would be better for Bailey to accept that and roll with the punches. Bitcoin and its ilk already have a legion of fans in this country. If people like the concept of central bank issued digital currencies, there would theoretically be nothing to stop them from using digital euros if and when they arrive. There are already outlets in London that accept the paper equivalent (and dollars and yen while we're at it). Here's a potential selling point for your business: 'We accept the digital euros!' Right now, the central bank looks flat-footed, a very obvious laggard, largely thanks to the conservatism of the governor. I suspect some of Bailey's caution can be tracked back to his time at the head of the Financial Conduct Authority, a fairly thankless, if well remunerated, task at the best of times. Its CEO tends to get the blame for everything and the credit for nothing. Launching a new form of money is bound to create challenges and it will once again be Bailey's head on the block if something goes wrong. There have lately have been suggestions that the Bank could cease or at least shelve the work it has been doing on a digital pound. That would be a mistake. Digital currencies are coming. The Bank should accept that and prepare for the future. The governor badly needs to pull his legs out of the mud in which they're stuck.


Coin Geek
7 days ago
- Business
- Coin Geek
Bad week for UK: ‘Crypto' ATM crackdown, BTC sell-off
Getting your Trinity Audio player ready... It was a rough week for all things digital money in the United Kingdom, as reports emerged that the government plans to sell off $7.2 billion (£5.33 billion) in confiscated BTC, rather than stockpiling it as some industry groups have urged. Meanwhile, the U.K.'s digital currency ATM crackdown continued, just as new online research by the U.K.'s top ATM network showed that cash is still the most trusted payment method in the country. UK's digital currency sell-off On July 19, The Telegraph newspaper reported that the U.K. Chancellor, Rachel Reeves, was working with police forces to sell off a stockpile of seized digital assets worth 'at least' £5 billion ($6.7 billion). It's estimated that the U.K. government currently holds around $7.2 billion (£5.33 billion) in confiscated BTC as a result of investigations into frauds, scams, money laundering, and other illicit finance. The report, published Saturday, stated that the U.K. Home Office plans to develop an official digital asset storage system to handle BTC sales and other digital currencies. This is part of a broader effort by the U.K. government, under Prime Minister Keir Starmer's Labour Party, to fill a much-talked-about £22 billion ($29 billion) 'black hole' in the U.K.'s public finances. Selling off over £5 billion worth of BTC would undoubtedly dent this figure, but the rumored move met with a swift and negative response from key voices in the digital asset and finance space. On Monday, trade association CryptoUK called on the government to take 'a long-term view,' arguing that the plan to sell off the nation's confiscated crypto stockpile 'would run contrary' to the country's goal of becoming a digital asset innovation hub. 'We would urge the government to take a long-term view on the holding of crypto and deeply consider what message offloading these digital assets would send to the UK's crypto industry,' said a CryptoUK spokesperson, as reported by tech news site Decrypt on July 21. The trade association added that 'other jurisdictions now hold Bitcoin reserves and Bitcoin treasuries are increasingly popular with companies.' This sentiment was echoed by Nigel Green, CEO of global financial advisory giant deVere Group, who pointed to the example of the United States and its recently announced Bitcoin Reserve. 'If countries like the US, the world's largest economy, are seriously weighing Bitcoin as a reserve, why would the UK liquidate instead?' He argued. 'If we advocate crypto as strategic, then hastily disposing of seized Bitcoin is hypocritical—and harmful.' Green warned that the mooted move would echo past errors and undermine long-term strategy. 'Turning these assets into instant cash is tempting, but it risks repeating historical errors,' said Green, noting that 'they sold gold in a dip, only to regret it years later. We risk replaying that error with Bitcoin.' He emphasized that 'emergency fiscal relief is not always best served by fire-sale tactics.' Green reiterated that 'fiscal pressure shouldn't drive poor asset decisions,' and suggested that, far from being a gamble, BTC could act like digital gold: 'It's scarce, decentralised, and a hedge against inflation.' At the same time as Chancellor Reeves was reportedly discussing with the U.K. police selling the government's substantial holdings of confiscated BTC, the latter was continuing its crackdown on rogue crypto ATMs. Digital currency ATMs under fire again According to a July 17 statement from the Financial Conduct Authority (FCA)—the U.K.'s top finance sector watchdog—two individuals were arrested, and seven digital currency ATMs found and seized, as part of an operation led by the FCA and the Metropolitan Police Service targeting four premises across southwest London. Since January 10, 2021, businesses providing certain digital asset services in the U.K. must be registered with the FCA under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLRs). Therefore, operating a cryptoasset exchange or a digital currency ATM in the U.K. is illegal without FCA registration. By July 2023, the FCA had announced the shutdown of 26 machines operating unlawfully nationwide. Despite these closures, operating a digital currency ATM in the U.K. is technically still legal, as long as the operator registers with the FCA. However, the FCA has yet to approve a single registration for a digital currency ATM, amounting to an effective ban, in all but name. 'There are currently no legally-operated crypto ATMs in the UK, so using one only supports crime,' said the FCA. 'If you're operating a crypto ATM or exchange illegally, then you should expect serious consequences.' This attitude is not unique to the U.K., as recent months have seen an increasing global crackdown on digital currency ATMs. In the U.S., in February, Senator Dick Durbin (D-IL), Ranking Member of the Senate Judiciary Committee, introduced the Crypto ATM Fraud Prevention Act. It would, amongst other measures, prevent new users from spending more than $2,000 daily or $10,000 over a 14-day period at digital currency ATMs, and require live, verbal confirmation for any transaction greater than $500. In April, Australia followed suit by putting digital currency ATM operators on notice over a lack of AML/CFT checks; and most recently, earlier in July, New Zealand outright banned digital currency ATMs. These crackdowns demonstrate a concern amongst lawmakers and regulators that the digital currency ATM sector is a particular hotbed of illicit finance, fraud, and scams—a feeling that the U.K. general public may well share. Just as the FCA continues to enthusiastically enforce its de facto ban on digital currency ATMs, the U.K.'s main ATM and interbank network published new research showing that cash is still the most trusted payment method in the country. UK still values cash despite growth in digital payments This week, Link, the U.K.'s leading cash access and ATM network, published the results of research into current customer payment and spending habits. It found that 'while contactless card payments are seen as the most convenient and quickest form of payment by a significant majority of consumers, cash is seen as the most reassuring for staying within a budget and fully understanding the cost of shopping too.' According to the research, almost two-thirds of consumers (65%) said cash protects them from fraud, compared to (22%) contactless card and (18%) digital wallets. While contactless, via card, remained 'the most preferred payment method for consumers,' with 40% choosing this option, this number was slightly down on previous LINK research. The publication suggested this 'may reflect the growing popularity of digital wallets such as Apple Pay or Google, which increased over the same period.' In a seeming blow to the digital payments and digital money sectors, the data revealed that 63% of respondents said they were unlikely to go completely cashless in the next 12 months, with only 8% being entirely cashless today, up from 6% in late 2024. The research also saw 85% of respondents highlight the risk of a cashless society and its effect on people who cannot use digital payments yet. 'Cash remains a critical part of the UK's payment landscape,' said Graham Mott, LINK director of strategy. 'This research shows that, while digital payments are growing, cash continues to play a vital role in financial inclusion, budgeting, and consumer choice.' Digital assets were not specifically mentioned as a part of the survey, but the findings that cash remains more trusted than digital payments almost certainly imply that digital assets have a long way to go—in the U.K. at least—before they will be considered a secure and trusted form of payment akin to fiat currency. Watch: How do you build a successful ecosystem? Bring blockchain to the builders! title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen="">