Circle stock surges, 2025 set to be a bumper year for crypto IPOs
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Circle stock surges, 2025 set to be a bumper year for crypto IPOs
Fueled by favorable government initiatives on both sides of the Atlantic, the convergence of fintech and crypto assets will be a key trend to watch in 2025.
Navigating Web3 tides with focused insightsBy Ashrith Rao
Translated by Baicai Blockchain
Following the cold skepticism of the "crypto winter," the digital asset market is not merely rebounding—it's building momentum for a historic recovery.
From early 2024 to mid-2025, the crypto market has surprised even seasoned financial experts with its remarkable rally and resilience.
The new foundation is stronger.
Fewer scammers operate on crypto platforms, technology has matured, cryptocurrencies have gained support from the U.S. president, and the scale of investors and participants has significantly expanded.
With enthusiastic backing from traditional wealth management institutions and retail investors alike, listings and trading activities in the crypto industry are flourishing.
Circle’s Blockbuster IPO Leads the Charge
Circle’s blockbuster IPO marks the beginning of a wave of public offerings in the crypto space—Wall Street overlooked its massive pre-IPO undervaluation.
Now, both crypto giants and Wall Street heavyweights are preparing to profit from the upcoming surge in initial public offerings (IPOs).
Market appetite for crypto stocks was evident during Circle’s first week as a public company—the issuer of the USDC stablecoin saw its share price soar from an IPO price of $31 to $107.
On its debut day, Circle’s stock surged over 168%, far exceeding market expectations.
Circle’s tremendous success may prompt more crypto companies to follow suit or accelerate their own listing plans.
This successful IPO underscores its broad impact on the crypto market, where Circle has crafted a compelling narrative amid the current pro-crypto climate in the United States.
Circle’s IPO sets a new benchmark for the industry and reflects growing public acceptance of digital assets.
Upcoming IPOs
In recent weeks, prominent companies in high-growth sectors—especially digital assets and fintech—have successfully gone public, signaling a revival in capital markets activity and strong investor demand.
The increasing number of crypto IPOs marks a pivotal moment for the industry, reflecting greater confidence among crypto firms in attracting mainstream investors.
This trend also brings increased transparency, regulatory scrutiny, and capital inflows, potentially solidifying digital assets’ position within traditional financial markets.
The latest development: Bullish, the Peter Thiel–backed cryptocurrency exchange, has confidentially filed for an IPO with the U.S. Securities and Exchange Commission (SEC), the Financial Times reported Tuesday.
Spun off from blockchain software firm Block.one, Bullish previously attempted to go public via a special purpose acquisition company (SPAC) in 2021.
However, that plan failed in 2022 due to regulatory crackdowns and rising interest rates that roiled stock markets.
The Trump administration, taking a markedly different stance from its predecessor, has adopted a relaxed approach toward crypto regulation, supporting pro-industry policy goals, while the SEC has paused several investigations.
According to the Financial Times, Bullish hopes to capitalize on the renewed investor enthusiasm for digital assets.
Bullish’s filing follows closely on the heels of Gemini’s announcement. Gemini, the cryptocurrency exchange operated by billionaire twins Tyler and Cameron Winklevoss, revealed last week it had submitted confidential documents for a U.S. IPO.
Gemini is a crypto exchange that allows users to buy, trade, and store over 70 tokens, though it has not yet disclosed the size or pricing range of its offering.
The Winklevoss twins rose to fame after suing Facebook and its CEO Mark Zuckerberg, claiming he stole their social media concept.
They reportedly settled in 2008, receiving shares in Facebook and cash compensation.
Bitcoin surpassed the critical milestone of $110,000 per coin, and the global crypto industry is currently valued at approximately $3.22 trillion.
Institutional investors have poured billions into gaining exposure to this asset class, especially following the U.S. approval of spot Bitcoin ETFs.
Coinbase’s inclusion in the S&P 500 index in May marked a landmark event for the U.S. crypto industry.
As the sector evolves financially and legislatively, crypto firms are increasingly integrating into traditional markets.
While no formal filings have been made, rumors suggest San Francisco-based exchange Kraken is preparing for an IPO in early 2026. The company’s last funding round was in 2019, raising $13.5 million at a $4 billion valuation. Reports indicate it is now negotiating with financial institutions to secure debt financing to accelerate pre-listing growth.
February reports indicated that U.S. custodian Bitgo is considering an IPO as early as this year, although no formal documents have been filed. In August 2023, Bitgo completed its latest funding round at a $1.75 billion valuation.
Given the warm reception Circle received, it is foreseeable that more companies will soon announce listing plans—these are just a few among many.
Considering the strong performance of Bitcoin treasury stocks and ETFs, investing in equities of companies supporting industry infrastructure appears to be a rational choice.
Surge in Crypto Transactions
Crypto-sector transaction activity is booming, driven by robust business growth, political backing, and regulatory support.
After years of strict regulatory constraints, the U.S. crypto industry is entering a golden age.
Many in the industry hope that President Trump’s second term will end the government crackdown on crypto seen in recent years.
For example, following Trump’s election, Bitcoin surged nearly 50%, hitting a record high above $111,000 last month.
Increased institutional adoption, growing public interest, and technological advancements are three key drivers expected to push the U.S. crypto transaction market from $9.8 billion in 2024 to $29.8 billion by 2033.
Europe is following America’s lead.
Supportive legal frameworks are expected to play a crucial role in the projected growth of Europe’s crypto market, which is forecast to rise from $6.9 billion in 2024 to $27.6 billion by 2033.
For instance, the European Union enacted the Markets in Crypto-Assets Regulation (MiCA) at the end of 2024, aiming to “tame the wild west of crypto.”
Amid intense competition to advance digital transformation and deliver innovative services to customers, transaction volumes in the technology and financial services sectors across the U.S. and Europe expanded significantly in 2024 and the first quarter of this year.
Financial sector companies showed notable year-on-year growth in overall transaction value as they pursue advanced digital technologies.
In 2024, crypto transactions in the U.S. and Europe increased significantly, fueled by favorable market conditions.
Last year, 93 deals were announced, totaling $4.1 billion. According to Mergermarket data, this represents a 2.5x increase in value and a 19% rise in volume compared to the previous year.
A closer look reveals the U.S. played a key role in driving the significant increase in total value in 2024.
Forty-five announced crypto deals totaled just over $3.2 billion—nearly five times the amount in 2023. During the same period, the EMEA region recorded 48 deals, up eight from the prior year. However, total value declined slightly by 5% year-on-year to $918 million.
Despite challenges facing the broader M&A market, Q1 2025 delivered strong results, with 23 deals completed across the U.S. and Europe, valued at $655 million.
In the first quarter of this year, Europe took the lead, completing 12 deals worth $348 million—a 9% and 21% increase respectively in volume and value year-over-year. U.S. transactions slowed, with 11 deals totaling $307 million, down 26% in volume and 66% in value compared to the prior year.
The decline in U.S. deal value is attributed to several major transactions in 2024, most notably the U.S.-Ireland fintech giant Stripe’s acquisition of stablecoin infrastructure provider Bridge Ventures. Valued at $1 billion, it remains the largest acquisition in the crypto industry to date.
Stripe aims to enhance its stablecoin services, which have proven to be a viable method for cross-border transactions via blockchain. With lower fees and instant settlement capabilities, stablecoins offer a secure and reliable alternative to traditional payment systems.
Summary
Driven by favorable government initiatives on both sides of the Atlantic, the convergence of fintech and digital assets will be a key trend to watch in 2025.
Financial institutions and payment companies are striving to improve the efficiency of their digital products, while emerging crypto firms are scaling up through mergers and acquisitions in a competitive landscape.
These dynamics will rapidly reshape the market, with M&A playing a crucial role in achieving this transformation.
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