In a significant move for the digital asset industry, Circle Internet Financial has filed for an initial public offering (IPO), offering unprecedented visibility into the financial underpinnings of one of the world’s largest stablecoin issuers. The disclosure arrives at a moment of structural change within the global regulatory landscape, as stablecoins increasingly serve as a geopolitical and financial flashpoint between the United States and Europe.
According to Circle’s S-1 registration statement, the company posted $1.7 billion in revenue and $156 million in net income over the past fiscal year, largely derived from its flagship product, the U.S. dollar-pegged stablecoin USDC. Despite Circle’s efforts to diversify through ancillary services such as blockchain integration, tokenized money market funds, and multi-currency support, nearly 99% of its revenue remains tied to USDC.
Notably, more than 60% of Circle’s revenue is absorbed by distribution and transaction costs, primarily paid to partners such as Coinbase under long-standing agreements. These costs have escalated rapidly — from $300 million in 2022 to over $1 billion in 2024 — reflecting the increasingly competitive nature of stablecoin distribution and the importance of market presence on centralized exchanges.
By contrast, Tether, issuer of the dominant USDT stablecoin, has generated profits estimated in the tens of billions of dollars without similar overhead. Tether’s operational opacity and regulatory ambiguity remain subjects of international concern, but its high-margin, low-transparency model continues to set a benchmark that Circle, despite its regulated and disclosure-oriented approach, has yet to match.
Stablecoins as Strategic Infrastructure
Beyond corporate fundamentals, Circle’s IPO comes at a time when stablecoins are being repositioned from niche crypto products to essential components of national financial strategies. U.S. Treasury Secretary Scott Besant recently described dollar-backed stablecoins as “an instrument of dollar diplomacy,” echoing sentiments from within the Federal Reserve that view private stablecoins as tools to preserve global dollar hegemony amid rising protectionism.
In Europe, however, stablecoins — particularly dollar-denominated ones — are viewed with more suspicion. A public dispute has emerged between the European Central Bank (ECB) and the European Commission over the sufficiency of the Markets in Crypto-Assets (MiCA) regulatory framework. The ECB has warned that US stablecoins pose a threat to the euro’s international role, while the Commission insists that MiCA provides adequate safeguards. The disagreement underscores the EU’s divided response to digital asset integration and its ongoing efforts to promote a sovereign alternative through the Digital Euro.
Simon Seiter, CFO and CPO of AllUnity, a euro-denominated stablecoin initiative backed by major European institutions, said in an interview that “The ECB’s defensive posture risks stifling private innovation. What we need is a cooperative model where stablecoins and central bank digital currencies can coexist.”
Institutional Adoption and Regulatory Realignment
Regulatory momentum in the United States appears to be moving in the opposite direction. Under newly appointed SEC Chair Paul Atkins, the Commission has clarified that fiat-backed stablecoins like USDC and USDT are not securities, removing a key source of legal uncertainty. This shift coincides with bipartisan efforts in Congress to pass comprehensive stablecoin legislation, such as the Stable Act and the Genius Act, which would codify reserve requirements and licensing structures while affirming the legality of stablecoin issuance by banks and fintech firms.
Major financial institutions are responding to the changing environment. Bank of America’s CEO has publicly stated that the bank would consider entering the stablecoin market pending regulatory clarity. Meanwhile, crypto-native firms like Ripple are leveraging capital reserves to expand into traditional finance through acquisitions such as that of prime broker Hidden Road, suggesting a convergence of digital asset and legacy financial infrastructure.
Global Implications
As stablecoins evolve from speculative tools to infrastructural elements of the global financial system, their strategic relevance is likely to increase. Circle’s proposed payments network — a blockchain-based platform offering 24/7 settlement among partner banks such as Deutsche Bank and Santander — illustrates how these instruments could disrupt traditional cross-border payment systems like SWIFT.
Yet economic sovereignty concerns persist. The ECB’s criticism of foreign stablecoins and reluctance to open central bank balance sheets to private euro stablecoin issuers highlights the policy divergence between the U.S. and the EU. “Europe risks missing the opportunity to shape the next generation of financial rails,” said co-hosts of the BFRR podcast in a recent episode that analyzed the implications of Circle’s IPO and broader stablecoin market dynamics.
Circle’s IPO may mark a financial milestone for the stablecoin industry, but its broader significance lies in the emerging competition between regulatory regimes. Whether stablecoins ultimately serve as extensions of national policy, decentralized alternatives to traditional money, or intermediaries in a multi-currency digital ecosystem will depend as much on politics as on code.
Bitcoin, Fiat & Rock’n’Roll Website
Bitcoin, Fiat & Rock’n’Roll Telegram Channel
Relai*: Buy Bitcoin with Relai – you can do a one-time purchase or savings plan: Click here. Use the referral code „ROCK“ to reduce transaction fees by 0.1% while supporting Bitcoin, Fiat & Rock’n’Roll.
Value4Value Podcast Streaming: Support our podcast by listening to our episodes on the Fountain Podcast App. This way, if you wish, you can support us „Value4Value“ while listening to the podcast. You can find us on the Fountain Podcast App here: Click here
Digital Euro Conference Partnership: BFRR partners with the Digital Euro Conference 2025 taking place on March 27 in Frankfurt. DEC25 brings together leading voices shaping the financial landscape, covering topics around retail and wholesale CBDCs, stablecoins, and tokenized money in general. As an official event partner, BFRR gives away one free ticket for physical participation in Frankfurt. If you are interested, please write us an email to info@bfrr.de by January 31st. If you are not the “lucky winner”, you get 20% off the ticket prices with the code “BFRR20”. To buy your ticket go to the official website Click here and insert the code “BFRR20”.
Disclaimer: The content of this podcast reflects the private opinions of the hosts, serves exclusively for general information purposes and does not constitute investment advice. Always remember: Do your own research – inform yourself before making any investment decisions, such as buying Bitcoin. First try to understand what Bitcoin is and how to store it. This podcast does not provide financial advice. Note that the co-hosts might be invested in crypto assets. Read more on our website: Click here
All links marked with „*“ are affiliate links. If you use these links for purchase, the podcast receives a small share of the revenue without any additional costs to you. On the contrary, affiliate links often include discount promotions, so you can even save money. We would appreciate it if you use these links to support us. Thank you very much!