Crypto Firm Circle Set to Make Stock Market Debut — WSJ

By Corrie DriebuschA buzzy reception for crypto company Circle's stock-market debut could give bankers hope the sleepy market for initial public offerings will warm up this summer.The stablecoin issuer and some shareholders sold 34 million shares at $31 apiece late Wednesday, above expectations. The stock is set to start trading Thursday on the New York Stock Exchange under the ticker symbol CRCL.The company is going public while basking in the Trump administration's embrace of the crypto industry. Vice President JD Vance recently told attendees at a bitcoin conference in Las Vegas that the administration would press ahead with crypto-friendly policies. The Senate is also preparing to pass legislation that would create a regulatory framework for stablecoins, which are used by traders to store cash or purchase other tokens.Circle Internet Group issues the world's second-largest stablecoin, called USD Coin or USDC, which has a market capitalization of about $62 billion, according to CoinMarketCap. Stablecoins are backed by reserves of cash or cash-like assets such as Treasurys, and are supposed to maintain a one-to-one exchange ratio with the dollar or other government currencies.The Trump family's World Liberty Financial has launched its own stablecoin.Circle was preparing for an IPO earlier this spring along with other big-name IPO candidates, including online ticket platform StubHub, fintech company Chime Financial and lending and online payments company Klarna. Then came President Trump's "Liberation Day" tariffs, which escalated into a global trade war and sent major U.S. stock indexes reeling."There's a term when going public, it's either pencils up or pencils down," said Nelson Griggs, president at Nasdaq, at the U.S. Chamber of Commerce Capital Markets Summit on Tuesday. After Liberation Day, " all pencils went down," he said.In April, U.S. IPOs raised the smallest monthly haul so far this year.June is looking to be better. Circle raised more than $1 billion in its IPO, and Chime Financial this week began meeting with prospective buyers for its offering, with the goal of making its stock-market debut next week. Bankers and exchange officials estimate more than a half dozen notable companies, including Circle and Chime, will list shares this month.Recent IPO performance bodes well for Circle and others dipping their toes in the market.Last month, trading platform eToro's shares rose 29% in their first day of trading. Hinge Health similarly priced its offering at the high end of expectations, and its shares rose after they began trading. Both stocks remain above their IPO prices.Shares of companies that went public in the U.S. this year are trading up 15% on average from their IPO prices through Tuesday, according to data from Dealogic, compared with the roughly 1.5% year-to-date gain for the S&P 500. Companies that went public in the last three years are also up from their IPO prices.The IPO classes of 2020 and 2021 remain in the red.Write to Corrie Driebusch at [email protected]