Circle's IPO Success Sparks Tensions with Early Backer Arca

Circle, the issuer of the USDC stablecoin, made headlines with a strong public debut on the New York Stock Exchange on June 5, posting gains of over 160% in its first day of trading. However, the milestone was met with discontent from longtime backer Arca, whose chief investment officer Jeff Dorman publicly criticized the company for granting a disproportionately small IPO allocation. 

Circle Soars 167% on NYSE Debut as Investor Appetite for Stablecoins Surges

Circle, the fintech firm behind the dollar-pegged stablecoin USDC, made a historic debut on the New York Stock Exchange (NYSE) on June 5 under the ticker symbol CRCL, soaring 167% by the close of its first trading day. The firm’s shares opened at $31, surged as high as 235% in early trading, and closed at $82, signaling strong institutional and retail demand for stablecoin-focused firms amid a shifting financial landscape.

Circle share price (Source: Yahoo Finance)

This IPO marks one of the most successful public offerings in the digital asset space in 2025 and underscores growing investor interest in blockchain-native financial infrastructure, particularly as stablecoins become increasingly integrated into global finance.

Circle’s public market debut was buoyed by backing from some of the most influential players in the financial world. Notably, BlackRock, the world’s largest asset manager, revealed plans to acquire a 10% stake in the IPO. Additionally, ARK Investment Management, led by Cathie Wood, was reportedly eyeing a $150 million allocation.

This overwhelming demand led Circle to expand its offering to a marketed range of $1.05 billion, with 34 million shares made available to investors. 

Circle, which issues USDC, one of the most widely used and regulated stablecoins in the market, has long been regarded as a cornerstone of crypto’s integration with traditional finance. USDC is used in decentralized finance (DeFi), cross-border payments, and corporate treasury management, and has consistently maintained its dollar peg amid past market volatility.

A Comeback Story Amid Delays

Circle’s path to going public hasn’t been linear. The company initially planned to debut much earlier but delayed its offering due to broader macroeconomic concerns, including heightened geopolitical tensions and global trade uncertainty. However, with improving market sentiment and increasing clarity around crypto regulation in the US, Circle seized the opportunity to list at a time when investors are looking beyond speculative assets and into real-world utility plays in the blockchain space.

The timing also aligns with a broader narrative of institutional migration into digital assets. Companies such as Semler Scientific, MicroStrategy, and various ETF issuers have been pivoting into digital asset strategies, further fueling mainstream interest in firms like Circle.

What’s Next for Circle?

As Circle transitions into its new role as a publicly traded company, it enters a pivotal phase. It will need to demonstrate sustainable revenue models, regulatory compliance, and technological innovation in an increasingly competitive landscape. Rival stablecoin issuers like Tether, PayPal, and decentralized protocols continue to innovate in the space, and Circle will be under pressure to maintain its lead, especially now under the scrutiny of public shareholders.

Nevertheless, with nearly $30 billion worth of USDC in circulation and major backing from legacy financial titans, Circle is positioned as a bridge between the old and the new worlds of finance.

Its successful debut is not just a win for the company but a signal to the market: stablecoins are here to stay, and the companies behind them are beginning to claim their seat at Wall Street’s table.

Arca Blasts Circle Over 'Throwaway' IPO Allocation as Public Trading Begins

Despite the landmark public listing, the company faced unexpected backlash from one of its earliest crypto-native supporters just hours after its launch and subsequent stock surge.

Jeff Dorman, Chief Investment Officer of Arca, a digital asset investment firm, published an open letter slamming Circle for what he described as an ”inappropriate” and ”insulting” allocation of just $135,000 in the company’s high-profile IPO. Dorman revealed that Arca had submitted a $10 million order, only to be granted a fraction of that amount, sparking outrage and a complete severing of ties between the two companies.

“You are the first and only crypto company that has ever treated Arca this way,” Dorman wrote. “I cannot believe our efforts to help you grow for years culminated in you giving us a joke, throwaway allocation.”

Full open letter to Circle (Source: Jeff Dorman)

A Relationship Fractures at a Crucial Moment

According to Dorman, Arca had supported Circle since its early days and had shown loyalty during times of uncertainty—including rumors that Circle would delay its IPO due to macroeconomic pressures like trade tariffs. Yet, despite that longstanding backing, Arca was reportedly sidelined in favor of larger institutional players during the IPO.

The letter struck a deeply personal tone, describing the snub as a betrayal of the crypto-native ethos that companies like Arca had worked to uphold since leaving traditional finance behind nearly a decade ago.

“Most of Arca’s management team left Wall Street eight years ago to start a crypto-native company specifically to get away from TradFi clowns like you,” Dorman continued. “Ironically, you’ve come full Circle.”

He concluded by announcing that Arca will close all of its accounts with Circle and actively discourage others from doing business with the firm.

The incident with Arca has revealed simmering tensions within the crypto industry. As more blockchain-native companies seek traditional financing through IPOs or venture capital, they increasingly face pushback from early supporters who feel abandoned in the process.

The Broader Debate: Crypto-Native vs. TradFi

Dorman’s letter shines the spotlight on a growing divide between crypto-native firms and those aligning with legacy financial institutions. While going public offers Circle access to capital and credibility in traditional markets, it also comes with scrutiny, and, as Dorman's critique highlights, accusations of compromising the community-first values that helped the company rise.

The reaction has prompted wider discussion on social media, with some voices in the crypto space supporting Dorman’s position and others defending Circle’s strategic decision-making. Some pointed out that large IPO allocations are often driven by investment banks and underwriters who prioritize firms with larger check sizes or strategic positioning.