Bitcoin? Wall Street has a new encryption obsession

For more than a decade, Bitcoin was the undisputed face for digital financing. When you think about “Crypto”, think about Bitcoin. Its storms and accidents were treated as a jar for the entire industry. This year, he even recorded new records, which enhances his rule.

But during the past month, the encryption world did not talk about bitcoin. The lights company has been stolen by a company that most people have not heard.

While the price of Bitcoin has reached the highest level ever in this spring, its hegemony is challenged. Its market value, although it is still $ 2 trillion, suddenly looks like yesterday’s news. Because in the world of financing, Wall Street and social media have a new Habibi: Circle Internet Group.

On June 5, the public department went. The public subscription made the stock price at $ 31 per share, which resides the company at $ 6.3 billion. What happened after that was no less than the explosives. In only eleven trading sessions, Serke shares increased by 675 %, prompting the market value to more than $ 48 billion.

To put it in the right quorum, Circle is now more than the iconic industrial giants such as Ford Motor and Granur Motors. The three major auto manufacturers in Detroit produce millions of physical cars annually. So, what does the circle produce to justify this amazing evaluation?

The answer is amazingly simple: a special type of cryptocurrency called stablecoin.

Here is how it works. You give one American circle. In contrast, they give you one of their digital codes, called USDC. This symbol is stablecoin, which means that its value is linked to a stable origin. In this case, the dollar you just provided to them. It will always be worth a single dollar because, unlike Bitcoin or Ethereum, Stablecoins is not designed to volatility. Then he takes Circle the actual dollar, and invests it in safe assets, loaded with benefits such as short -term American cabinets, and pockets of return. You get a digital dollar. They get profit. This is the entire business model.

What Wall Street buy is not just a smart financial episode; It is the hope that stablecoins will be the future of money. The dream is that USDC will become common like a visa or MasterCard for daily transactions, allowing people to move money at a cheap price and immediately without other encrypted currency fluctuations.

This hope is fed with favorable winds from Washington. The Senate recently approved the “Genius Act”, a historical legislation that opens the door for banks, high -tech companies such as PayPal, and main retailers like Amazon to adopt Stablecoins for payments. This is the first main, especially friendly encryption list, approved by Congress. Although he still needs to pass it at home, encryption advocates are optimistic.

To date, Stablecoins has been used mostly in the world of encryption for trading or decentralized financing (Defi). But with this new legislation, Circle, which is not related to one financial institution, is in an ideal position to become the big winner. Some call this “IPHONE moment” in the industry.

The circuit fever is likely to start at least until the company publishes its first quarterly profit. Only then, investors will decide if the honeymoon continues.

Meanwhile, if you want to look like you know what is happening in Wall Street and in the world of technology, there is a new name that must be dropped.

Bitcoin?