{"id":43754,"date":"2025-09-24T11:35:45","date_gmt":"2025-09-24T11:35:45","guid":{"rendered":"https:\/\/quickassetsmarket.com\/index.php\/2025\/09\/24\/circle-stock-price-as-tethers-valuation-balloons-to-500-billion\/"},"modified":"2025-09-24T11:35:45","modified_gmt":"2025-09-24T11:35:45","slug":"circle-stock-price-as-tethers-valuation-balloons-to-500-billion","status":"publish","type":"post","link":"https:\/\/quickassetsmarket.com\/index.php\/2025\/09\/24\/circle-stock-price-as-tethers-valuation-balloons-to-500-billion\/","title":{"rendered":"Circle stock price as Tether\u2019s valuation balloons to $500 billion"},"content":{"rendered":"
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Circle stock price remains under pressure this month as investors assess the impact of the Federal Reserve\u2019s interest rate cuts that will impact its revenue. It has plunged by 56% from its highest point this year. So, what next for CRCL as Tether\u2019s valuation surges to $500 billion? <\/p>\n

Tether valuation to hit $500 billion<\/h2>\n

The Circle stock price will be in the spotlight on Wednesday as investors assess its valuation. This will happen after a Bloomberg <\/a>report noted that Tether\u2019s valuation could hit a whopping $500 billion in an upcoming capital raise.\u00a0<\/p>\n

Tether will receive this valuation as it is raising about $20 billion in exchange for a 3% stake. A $500 billion valuation would be make it one of the biggest private companies globally. It would also be much higher than the $172 billion it has in assets today.<\/p>\n

As such, the $500 billion valuation would be 2.7x of its assets. In contrast, Circle has a market cap of $30 billion, giving it a multiple of 0.4x to its USDC assets. <\/p>\n

Tether and Circle have different business models<\/h2>\n

At face value, Tether and Circle are similar companies that offer the same product, with the only difference being the name of their coins. However, a closer look behind the scenes shows that the two are much different. <\/p>\n

One difference is that Tether\u2019s USDT is different from USDC in several ways. First, USDT is not audited by a Big Four accounting company like KPMG and PWC.<\/p>\n

Instead, Tether focuses on quarterly attestations of its reserves through small accounting firms. In a recent statement, Paulo Ardonino noted that getting a Big Four audit firm was a big priority for the firm.<\/p>\n

The other major difference is that Tether takes all of its profits. In contrast, Circle has an expensive deal with Coinbase, where the latter keep 100% of the interest income from USDC held on its platform. <\/p>\n

The two companies then split 50:50 the reserve revenue of USDC assets held out of Coinbase. This deal is reviewed every three years, with the next one coming in 2026. <\/p>\n

Additionally, whereas Circle\u2019s USDC is backed by fiat and short-term treasuries, Tether\u2019s USDT is backed by numerous asset, including US treasuries, money market funds, corporate bonds, gold, and Bitcoin. <\/p>\n

The diversity of Tether\u2019s holdings makes it a more profitable company than Circle. However, it also means that the company\u2019s USDT is not compliant with the GENIUS Act<\/a>, <\/strong>which explains why it is launching a new US-based stablecoin. <\/p>\n

What is clear between the two companies is that the Federal Reserve interest rate cuts<\/a> <\/strong>will impact their business. Circle, which relies solely on short-term US bonds, will be affected more as bond yields fall. <\/p>\n

Indeed, some of Tether\u2019s holdings will benefit in a low-rate environment. Bitcoin and gold prices could continue soaring<\/a>, boosting its reserves.<\/p>\n

Circle stock price technical analysis <\/h2>\n
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CRCL stock chart | Source: TradingView<\/p>\n

The eight-hour chart shows that the CRCL stock price has crashed in the past few months, moving from a high of $298 to the current $130. This crash happened as investors remain concerned about its valuation and interest rate cuts.<\/p>\n

It has remained below the 50-period moving average and the recent attempt to recover has found a major resistance at $148. Therefore, the most likely scenario is where the Circle share price continues falling as sellers target the year-to-date low of $107. <\/p>\n

The post Circle stock price as Tether’s valuation balloons to $500 billion<\/a> appeared first on Invezz<\/a><\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Circle stock price remains under pressure this month as investors assess the impact of the Federal Reserve\u2019s interest rate cuts that will impact its revenue. It has plunged by 56% from its highest point this year. So, what next for CRCL as Tether\u2019s valuation surges to $500 billion?  Tether valuation to hit $500 billion The <\/p>\n","protected":false},"author":1,"featured_media":43755,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":{"0":"post-43754","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-world"},"_links":{"self":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/43754","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/comments?post=43754"}],"version-history":[{"count":0,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/43754\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media\/43755"}],"wp:attachment":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media?parent=43754"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/categories?post=43754"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/tags?post=43754"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}