Investing.com -- Circle, the issuer of stablecoin USDC, had a successful initial public offering (IPO) on Thursday that saw its shares surge 300% from approximately $31 to around $90. This significant event indicates a shift in public perceptions of the crypto industry. Lorenzo Valente and Raye Hadi, part of the Digital Assets Team at ARK Invest, suggest that Circle’s successful IPO could motivate more crypto-native firms to consider public listings, further emphasizing the sector’s role as a global financial infrastructure innovator.

Stablecoins are playing a significant role in distributing the US dollar (USD) to regions that are trying to reduce their reliance on the currency. By using blockchain technology, Circle and Tether , another stablecoin issuer, are bypassing traditional banking infrastructure and providing easy cross-border access to USD. Both companies have built up large reserves of US Treasuries as collateral, turning stablecoins into parallel monetary networks. In emerging markets, Tether’s USDT has emerged as a viable alternative to local currencies that have a history of devaluation and eroding purchasing power and wealth.

Applying Hernando de Soto’s framework, stablecoins are continuing the property rights revolution that Bitcoin initiated. Bitcoin has enabled financial property rights through smartphones. Stablecoins are advancing this cause with a less volatile asset and increased utility across blockchains and financial platforms. For the 1-3 billion people without access to traditional financial services, stablecoins are providing their first entry point to the global economy.

Nic Carter recently drew a parallel between stablecoins and Starlink, a satellite internet constellation being constructed by SpaceX. Just as Starlink circumvents traditional infrastructure to provide internet service to underserved regions, stablecoins are introducing billions of people to a permissionless financial system. Both Starlink and stablecoins are parallel systems that provide functionality where legacy systems fall short.

Several factors could influence Circle’s revenues and margins in the coming years. Circle’s business model is expected to evolve as it capitalizes on network effects and scales. Lower interest rates could put pressure on the yield-based revenues it shares with distribution partners like Coinbase (NASDAQ: COIN ) and Binance. This adds significance to the speed at which both USDC and Circle’s payments platform scale, and to the partnership deals that Circle secures for strategic integrations and distribution.

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