There is a “cognitive dissonance” on Wall Street, says analyst.
Stablecoins are a “money make” for their emitters.
Circle (CRCL), a USDC Stablecoin issuer, landed on Wall Street and shook the heart of the financial system. Does that statement sound exaggerated? Not at all.
Is that on the day of his debut in the New York Stock Exchange (NYSE), on June 5, The firm’s action closed with a 168% rise Regarding the price of its initial public offer (IPO).
And if the debut was explosive, the five days later were mad. On June 10, CRCL reached a maximum price of $ 133, which represents a gain of 329%. At the time of publication of this note, the price is 106 dollars.
Thejaswini Ma, Analyst of the Token Dispatch site, Point out: “The initial public offer had an overdexanda of 25 times. In other words: for each available action, 25 investors wanted it. The company raised $ 1,050 million, and the market immediately decided that it was not enough.”
In simple terms, CRCL was marketing with an assessment that was quickly old: investors were willing to pay much more. For this reason, Thejaswini states that “Wall Street is currently experiencing what psychologists call ‘cognitive dissonance’: the uncomfortable sensation that arises when a cryptocurrency company behaves like a normal business.”
It should be explained that cognitive dissonance occurs when a person holds two contradictive ideas at the same time, hence the feeling of discomfort or confusion. But why is Wall Street experimenting this state? Because Cryptocurrencies are seen as risk assetsassociated with a lack of transparency and that are only used for financial speculation.
Although in this case, USDC is a stablecoin that maintains parity 1 to 1 with the US dollar, is backed by cash reserves and treasure bonds, and operates under standards of regulatory compliance, as Cryptonoticia explained.
In this regard, the analyst says: “Circle’s success validates the thesis that profitable cryptocurrency companies can prosper as independent public entities.” In addition, he points out:
“Five years ago, this IPO would have faced regulatory hostility. Within five years, the market could be too mature for this type of transformative opportunities.”
Thejaswini Ma, Analyst of the Token Dispatch site.
Circle, a money
USDC is the second most valuable stable in the ecosystem, With a capitalization of 61,000 million dollars. The largest is USDT, the currency that Tether issues, whose value amounts to 155,000 million dollars.
A key fact is that USDC dominates 53% of the total volume of transfers between Stablecoins. In other words, it is the stable currency most used for institutional payments, liquidations and transfers.
This not only reflects its relevance within the market, but is also the basis on which Circle has built a business model. By having 61,000 million USDC into circulation and placing that support in treasure instruments with yields from 4% to 5%, the return is significant.
To understand how it works, it is best to imagine a wheel that starts when users deliver dollars in exchange for USDC. Circle takes those funds and invests them in the United States Treasury Bonds in the short term, keeping interests as a source of income. The cycle is repeated again and again, thus generating millionaire gains.
And financial results speak for themselves. In 2024, the company generated 1.7 billion dollars in revenue, while the first quarter of 2025, its annualized income already reaches 2.3 billion, which implies an interannual growth of 59%.
For Thejaswini, Jeremy Allaire, CEO of Circle, “he is probably wondering why everyone else took them so long to realize that depositing money in treasure letters and keeping the interests’ was a viable business model.”
