Everbright Stock Soars on Circle IPO as Stablecoins Excite Investors
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The Circle website arranged on a smartphone in New York on Feb. 12, 2025.
China Everbright Ltd.’s stock surged after renewed enthusiasm for stablecoins, as investors reacted to the rising valuation of Circle’s initial public offering (IPO) and policy tailwinds in both the United States and Hong Kong — 10 years after Everbright’s early bet on the USDC issuer.
Shares of the Hong Kong-based financial services company jumped by as much as 26.6% on Tuesday before paring gains to close up 15.5% at HK$5.43 ($0.69). The rally was driven by renewed attention to Everbright’s early investment in Circle, the company behind USDC, the world’s second-largest stablecoin by market value.
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- China Everbright Ltd.'s stock jumped 15.5% after renewed interest in stablecoins and investor reaction to Circle's IPO.
- Circle, issuer of the USDC stablecoin, raised its IPO offering to 32 million shares at $27-$28 per share, valuing it up to $7.2 billion.
- The US Senate passed the Genius Act and Hong Kong enacted a stablecoin licensing framework, boosting related stocks.
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Who’s Who
- China Everbright Ltd.
- China Everbright Ltd. is a Hong Kong-based financial services company whose stock surged after renewed enthusiasm for stablecoins. The rally was driven by attention to Everbright's investment in Circle, the company behind the stablecoin USDC. Everbright became a strategic investor in Circle in 2016 through the Everbright-IDG Industrial Fund and still holds equity in the company.
- Circle
- Circle, founded in 2013, is a major digital currency player and issuer of USDC, the world's second-largest stablecoin. Everbright became a strategic investor in 2016. Circle filed for an IPO on the NYSE under "CRCL", aiming for a $7.2 billion valuation, bolstered by positive regulatory developments in the US and Hong Kong regarding stablecoins.
- ZhongAn Online P&C Insurance Co. Ltd.
- ZhongAn Online P&C Insurance Co. Ltd. saw its shares surge due to its subsidiary, ZA Bank, which owns 8.7% of stablecoin startup RD InnoTech. ZA Bank is also Hong Kong's first bank to offer reserve services for stablecoin issuers and began retail crypto trading in November 2024.
- ZA Bank
- ZA Bank is a subsidiary of ZhongAn Online P&C Insurance Co. Ltd. It owns 8.7% of stablecoin startup RD InnoTech and is one of three firms in Hong Kong's regulatory sandbox for stablecoin issuance. ZA Bank is also the first bank in Hong Kong to offer reserve services for stablecoin issuers and began retail crypto trading in November 2024.
- LianLian DigiTech Co. Ltd.
- LianLian DigiTech Co. Ltd. is a payment provider and partner of RD InnoTech, a stablecoin startup. Its stock recently saw significant fluctuations, soaring 64.3% before plunging 39%. Its subsidiary, DFX Labs, obtained a virtual asset trading platform license in late 2024, making it one of Hong Kong's ten officially licensed crypto exchanges.
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What Happened When
- 2013：
- Circle was founded.
- 2016：
- Everbright became a strategic investor in Circle through the Everbright-IDG Industrial Fund.
- November 2024：
- ZA Bank began retail crypto trading.
- Late 2024：
- DFX Labs, a subsidiary of LianLian DigiTech, received a virtual asset trading platform (VATP) license.
- As of December 31, 2024：
- USDC had $43.9 billion in circulation across 4.3 million wallet addresses.
- April 1, 2025：
- Circle filed for its IPO with the U.S. Securities Exchange Commission, aiming to list on the NYSE under 'CRCL.'
- May 21, 2025：
- Hong Kong's Legislative Council passed its stablecoin licensing framework.
- May 21, 2025 to June 2, 2025：
- Shares of ZhongAn rose 72% following passage of Hong Kong's stablecoin licensing framework.
- As of May 30, 2025：
- LianLian DigiTech's stock price reference point mentioned for comparison.
- June 2, 2025：
- Circle updated its IPO prospectus, increasing offering size and price range; LianLian DigiTech's stock soared 64.3%.
- As of June 3, 2025：
- Global stablecoins had a combined value of $248.4 billion; USDC accounted for 24%, Tether for 62%.
- Tuesday, June 3, 2025：
- China Everbright Ltd.'s shares surged as much as 26.6% before closing up 15.5% at HK$5.43. ZhongAn shares fell 6.4% though up 62% since May 21. LianLian DigiTech's stock plunged 39% to close at HK$10.
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