On June 2nd, Eastern Time, the stablecoin giant $Circle (CRCL.US)$ submitted an updated S-1 filing to the SEC, with significant adjustments to its listing plan: the fundraising target has been significantly raised from 0.1 billion USD to 0.175 billion USD. On June 5th, the company's stock rose 168.48% on its first day of listing, closing at 83.23 USD.
Whether in US stocks or Hong Kong stocks, stablecoins and related stocks derived from Cryptos have mostly seen increases, with significant rises observed in the related policy arbitrage stocks in Hong Kong. $ZA ONLINE (06060.HK)$ Similar stocks have cumulatively increased nearly 20% in the last three days, while BC TECH GROUP, the parent company of the compliant Exchange OSL, has seen an increase of over 40% in the last three days, and those holding Circle shares have $Coinbase (COIN.US)$ cumulatively increased nearly 10% in the last three days, while another Shareholder of Circle has $CHINA EVERBRIGHT L (CEVIY.US)$ The increase within June 3 has also exceeded 20%.
The comprehensive bloom of stocks related to cryptos in the US and Hong Kong is closely related to the advancement of crypto policies in the US and Hong Kong.
Breaking down Circle's prospectus.
Circle currently holds the second seat in stablecoins. According to Circle's latest IPO document (revised S-1 as of June 2025), based on data from 2024, Circle's income is divided into three parts: the first is the USDC reserve interest, specifically $32 billion in reserve funds invested in Treasury repurchase agreements with an annual yield of 4.5%, accounting for 86% of the income; the second part is the trading and custody service fees, specifically the exchange fees between cryptocurrencies issued by institutional clients and custody fees, accounting for 9%; the third part is the share of on-chain interaction Gas fees paid by developers, accounting for 5%.
The key growth in revenue for 2024 comes from a significant increase in institutional clients, with the number of institutional clients increasing by 82% year-on-year, including Visa, BlackRock, and others.
The recent devaluation and capital increase not only reflect a concession to reality but also aim to reserve more funds for future development. According to the latest IPO documents, the main uses of the raised funds are 35% for compliance license applications, 30% for reserves, 20% for cross-chain protocol development, and the rest for other purposes.Mergers and Acquisitions.Reserve.
According to the disclosure in the IPO document, there are also risks. A few important policy risks are as follows: First, if the US determines that the issuance of stablecoins belongs to the exclusive business of banks, then Circle will need to sell or shut down within two years. Secondly, if regions like Hong Kong and Singapore require local reserves, global operating costs will surge.
The centralized release of policies related to stablecoins.
The recent IPO of Circle and the significant rise in related crypto concepts in Hong Kong and the US are inseparably linked to the policies in both regions.
On May 19, 2025, the U.S. Senate passed the procedural vote for the "Guiding and Establishing National Innovation for U.S. Stablecoins Act" (referred to as the "U.S. GENIUS Act") with a vote of 66 in favor and 32 against. This milestone development marks the imminent arrival of the first federal regulatory framework for stablecoins in the United States.
Two days later, on May 21, the Hong Kong Legislative Council passed the "Stablecoin Regulation Bill," marking a significant breakthrough in stablecoin regulation in Hong Kong. According to the Hong Kong government, this regulation is expected to take effect within this year.
On June 1, the U.S. House of Representatives passed the "Payment Stablecoin Act," which requires stablecoin issuers to hold a bank license or a state-level money transmission license, and the reserve assets must be 100% cash plus government bonds.
The "GENIUS Act" explicitly prohibits algorithmic stablecoins, effectively granting exclusive licenses for physical asset-backed stablecoins.
Circle as a stablecoin $USDCoin (USDC.CC)$ The issuer's reserve model has always been similar to the 100% Cash + Treasury Bonds mandated by the new law, so no significant changes to the business model are needed to comply with the new regulations. The passage of the "Payment Stablecoin Act" essentially elevates the "Circle model" to an industry standard.
The passage of these two bills is significantly Bullish for Circle's development. In addition to confirming compliance legitimacy, these two bills also remove barriers for traditional Financial Institutions to participate in the stablecoin market. USDC could become the preferred partner for Banks, brokerages, and other Institutions, attracting more institutional capital.
Its latest IPO documents also reveal that in 2024, Circle's institutional client base has significantly increased.
Policies in Hong Kong have also followed suit. Under the dual effect of regulatory breakthroughs in the U.S. and institutional benefits in Hong Kong, related Cryptos policy concept stocks in Hong Kong also welcomed a considerable rise. Although many of the stocks rising in Hong Kong are largely policy arbitrage stocks, as the U.S. and Hong Kong's crypto-related policies become increasingly clear and favorable, more and more crypto-related companies, like Circle, are seeking IPOs.
Aside from Circle's IPO, who else is actively pursuing an IPO?
In Hong Kong, licensed Exchanges $OSL GROUP (00863.HK)$ will also be split off from BC TECH GROUP for listing. An application was submitted in April 2025, aiming to raise $0.3-0.5 billion. It is reported that Hashkey Exchange also secretly filed in May 2025, aiming for a Q4 listing. Both of these Institutions have submitted A1 applications and are currently under review by the Hong Kong Stock Exchange.
Clarifying the IPO intentions for Hong Kong stocks, currently in the preparation stage are the market maker Amber Group and the security company Certik.
Following the compliant exchange's announcement of the first crypto-related IPO in Hong Kong this year, it is expected that more crypto-related companies will intensively submit applications this year.
On the US stock market side, it is more lively than the Hong Kong stock market. According to SEC public documents and market intelligence, as of June 2025, besides Circle, the following companies are accelerating their IPO processes:
First is the established exchange Kraken, which secretly submitted F-1 documents in May 2025, planning a direct listing on the NYSE, expected to go public in the first quarter of 2026. The on-chain analysis leader Chainalysis submitted the latest S-1 document to the SEC in May 2025. In terms of mining stocks, Core Scientific has returned to the US stock market after bankruptcy restructuring, submitting a new S-1 in March 2025, with the code CORZ.
All these crypto companies entering the capital markets through IPOs or reverse mergers indicate that the crypto industry is moving from the fringes to the mainstream. They have made certain developments in business models, market scale, and industry standards, acquiring the ability to compete for capital market resources with traditional industry enterprises. This gradual clarity in regulation cannot be ignored as it expands the developmental boundaries of these companies, and with their listings, they will gain more funds to develop their businesses, which is something the industry can look forward to.
Editor/joryn
