Stablecoins Gain Momentum as Digital Currency Sector Experiences Active Growth
The stablecoin giant Circle recently announced its planned listing on the New York Stock Exchange (NYSE) on June 5. If successful, this will mark the first IPO in the stablecoin sector.
This development follows the passing of stablecoin-related legislation in the U.S. and Hong Kong in May, which established clear regulatory frameworks. These events have sparked growing interest in stablecoins across global stock markets, including A-shares, revitalizing related concept stocks and digital currency sectors.
Industry experts highlight that stablecoin legislation represents another milestone in cryptocurrency recognition following Bitcoin ETF approvals. Analysts from major institutions are actively researching this space, with dozens of reports published recently.
Circle's Potential IPO: A Milestone for Stablecoins
Founded in October 2013, Circle specializes in blockchain technology and stablecoins. In 2018, it partnered with Coinbase to create the Centre consortium and launch USD Coin (USDC), a dollar-pegged stablecoin designed to compete with Tether's USDT.
After the Centre consortium dissolved in 2023, Circle became the sole issuer and manager of USDC. As of April 2025, USDC has grown to become the world's second-largest dollar-linked stablecoin, with a market cap of approximately $60.9 billion—second only to Tether's USDT.
Circle's decision to pursue an IPO stemmed from the 2023 Silicon Valley Bank crisis. The company recently announced plans to list on NYSE, aiming to raise $600 million by issuing 24 million shares at $24–$26 per share, potentially valuing Circle at $6.2 billion.
Guosheng Securities notes that a successful Circle IPO could accelerate traditional financial institutions' adoption of stablecoins while boosting the U.S. stablecoin market.
Accelerated Growth of RWA Projects
Globally, stablecoins serve as digital assets pegged to fiat currencies like the U.S. dollar, offering price stability and better convertibility than traditional cryptocurrencies. Their strategic importance continues to rise, with the total market cap exceeding $250 billion as of May 2025—a $40 billion increase since 2024.
From 2024 to 2025, Real-World Asset (RWA) tokenization advanced rapidly worldwide. The two largest dollar-pegged stablecoins, USDT and USDC, now account for over 85% of the global stablecoin market cap.
China's RWA market has also seen multiple projects launched, including collaborations between Langxin Group and Ant Digital (new energy RWA) and between Xiexin Energy and Ant Digital (solar green asset RWA).
Regulatory Progress
In May 2025, the U.S. and Hong Kong passed stablecoin-related laws, clarifying regulatory frameworks. Hong Kong further formalized its Stablecoin Ordinance on May 30.
CITIC Securities suggests that these developments could facilitate RWA token issuance by mainland Chinese companies in Hong Kong while advancing digital currency payment and settlement infrastructure.
Digital Currency Sector Sees Active Trading
Positive market sentiment has driven growth in A-share stablecoin-related sectors. The digital currency concept index rose 0.45% recently, with key stocks like Tianyang Technology (+12.49%) and Yashi Optoelectronics (limit-up) performing strongly.
Hong Kong-listed China Everbright Limited, an early investor in Circle, also saw an 11.42% stock price increase, reflecting market optimism.
FAQ Section
Q: What is a stablecoin?
A: A stablecoin is a cryptocurrency pegged to a stable asset like the U.S. dollar to minimize volatility and enhance convertibility.
Q: Why is Circle's IPO significant?
A: It represents the first public listing in the stablecoin sector, potentially boosting institutional adoption and market credibility.
Q: How do stablecoins relate to RWA?
A: Stablecoins provide stable trading mechanisms for RWAs, improving liquidity and facilitating tokenized real-world assets.