{"id":33489,"date":"2025-06-24T18:02:00","date_gmt":"2025-06-24T18:02:00","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=33489"},"modified":"2025-06-24T18:02:00","modified_gmt":"2025-06-24T18:02:00","slug":"circle-drops-15-stock-frenzy-cools-as-bis-warns-of-stablecoin-risks","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=33489","title":{"rendered":"Circle Drops 15%, Stock Frenzy Cools as BIS Warns of Stablecoin Risks"},"content":{"rendered":"
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Stablecoin firm Circle\u2019s (CRCL) meteoric stock frenzy is showing some signs of cooling.<\/p>\n

After hitting a record high of $299 on Monday, shares of the stablecoin issuer declined 15% on Tuesday, extending a pullback that has left shares down roughly 25% from their peak. However, at $223, they are still trading over 600% higher than their IPO pricing earlier this month.<\/p>\n

The drop isn’t surprising as some analysts had already noted<\/a> the stock’s lofty valuation compared to peers, while Ark Invest has been continuously selling<\/a> more than $300 million worth of shares since the IPO. <\/p>\n

However, Tuesday’s decline coincided with fresh doubt from the Bank for International Settlements (BIS<\/a>), a financial institution owned by central banks, about the future of stablecoins.<\/p>\n

In a Tuesday press release<\/a>, the BIS said that “stablecoins as a form of sound money fall short, and without regulation pose a risk to financial stability and monetary sovereignty.” The institution argued that these tokens cannot guarantee one-to-one parity with central bank money, may struggle to handle liquidity under stress, and lack the controls needed to prevent financial crime.<\/p>\n

Instead, the BIS promoted tokenization of central bank reserves, commercial bank money and government bonds as the “next logical step” in financial innovation.<\/p>\n

“Stablecoins may eventually play a subsidiary role in the hinterland of the financial system if adequately regulated,” the authors wrote, adding that “besides acting as a gateway to the crypto ecosystem, their future role is unclear.”<\/p>\n

These remarks come in spite of the stablecoin sector’s rapid growth for everyday uses such as payments and cross-border transactions, with jurisdictions across the globe advancing regulations for the asset class. <\/p>\n

Payment firms such as Stripe<\/a>, Mastercard<\/a> and PayPal<\/a> developed a range of stablecoin-based services complementing traditional banking rails. Stablecoins facilitated $4 trillion in transaction volume over the past 30 days, data by Visa<\/a> shows.<\/p>\n

Circle is the issuer of USDC USDC, which is the second-largest stablecoin on the market with a $61 billion supply, following Tether’s $156 billion USDT USDT. It also launched<\/a> a payments and remittances network in April, aiming to eventually rival established players such as Mastercard and Visa.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Stablecoin firm Circle\u2019s (CRCL) meteoric stock frenzy is showing some signs of cooling. After hitting a record high of $299 on Monday, shares of the stablecoin issuer declined 15% on Tuesday, extending a pullback that has left shares down roughly 25% from their peak. However, at $223, they are still trading over 600% higher than […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-33489","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/33489","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=33489"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/33489\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=33489"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=33489"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=33489"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}