Bitcoin is now irrelevant. Put speculative meme coins out of your mind. And put dangerous cryptocurrencies out of your mind. Stablecoins may prove to be the greatest cryptocurrency investment opportunity of 2025 at a time when many others are depreciating.
Considering that stablecoins are meant to be, well, stable, that may come as a surprise. Investing in them directly won’t make you a crypto millionaire because they constantly trade for $1. The fascinating part, though, is that there are other ways to invest in them indirectly.
A stablecoin is what?
Stablecoins can be thought of as digital dollars, to put it simply. This is due to the fact that they are usually fully backed by cash and cash equivalents and are tied one to one to the US dollar. You can exchange your digital bucks for actual ones at any time.
The price of a stablecoin like USDC (CRYPTO: USDC) consistently fluctuates around $1 on a long-term price chart, with minor variations indicating shifts in supply and demand.
The stablecoin market is now expanding quickly. Stablecoins have expanded by 47% in the last 12 months, reaching a $200 billion market.
Simply put, huge institutional investors can participate in decentralized finance (DeFi) through stablecoins. This explains why several well-known businesses have introduced stablecoins, such as PayPal and Ripple, the company that created the XRP token.
Additionally, the Trump family’s cryptocurrency business, World Liberty Financial, has revealed plans to introduce its own stablecoin.
Since Coinbase, the largest cryptocurrency IPO
“Okay, sounds great, but how do I make any money from a digital asset that always trades for $1?” is probably what you’re wondering right now. The answer is straightforward: You invest in the stablecoin’s issuer rather than the stablecoin itself.
Due to the USDC stablecoin’s issuer, Circle Internet Group, filing to go public on April 1, that is now feasible. The IPO may occur as early as this June, and Circle is looking for a valuation of between $4 billion and $5 billion, according to sources that CNBC cited.
At the moment, USDC is the second-largest stablecoin globally, holding almost 30% of the stablecoin market’s total market capitalization.
The Circle IPO would be the largest cryptocurrency IPO since Coinbase Global (NASDAQ: COIN), which went public in 2021 at a valuation of around $100 billion.
Circle, which is anticipated to list under the ticker symbol CRCL, will join Coinbase and Strategy (NASDAQ: MSTR) as one of the top pure-play cryptocurrency stocks right away.
Additional stablecoin investing options
However, what if this year’s Circle IPO doesn’t go as expected? After all, it is generally believed that attempting to launch a big new initial public offering (IPO) in the midst of global economic instability is a surefire way to fail. Therefore, there’s a good chance that this IPO will be postponed.
Don’t worry, though. This year, stablecoins offer additional revenue streams. Because Coinbase and Circle have a close business relationship, investing in Coinbase could be another option.
Coinbase made Circle a cash cow in 2023 by purchasing an ownership investment in the company and establishing a revenue-sharing arrangement linked to the USDC stablecoin.
Coinbase CEO Brian Armstrong recently hinted that he is now working to make USDC the world’s top stablecoin, which would yield even more profits for the company.
Additionally, some cryptocurrencies, like XRP, have partner stablecoins of their own. Stablecoin activity is linked to total blockchain activity, hence these cryptocurrencies may be worth a closer examination.
