Cryptically-compliant Lonesome: How does the Circle CEO break the double hanging of Tether against the falling interest rates
The forthcoming financial report of Circle will be a new opportunity for him to prove the effectiveness of the strategy。
The forthcoming financial report of Circle will be a new opportunity for him to prove the effectiveness of the strategy。
By Olga Kharif
Photo by Saoirse, Foresight News
On 5 June, Circle CEO Jeremy Allaire (Central) attended the IPO ceremony at the New York Stock Exchange. Photographer: Michael Nagle / Bloomberg
Points:
- Although Circe is one of the most mature companies in the area of stabilization currency, CEO Jeremy Allaire has joined the ranks of billionaires, he still has the unfinished path of proof。
- Circle is facing multiple shocks: markets are competitive, core sources of income are at risk from falling interest rates, and the largest rival, Tether, is returning to the United States market。
- Allaire is convinced that his strategy and Circe will eventually win and that the company will release its financial report on Wednesday, which will be his new opportunity to prove the effectiveness of the strategy。
Jeremy Allaire still has an unfinished trail of proof。
As CEO of the Circle Internet Group, his company is one of the most recent businesses in the field of encrypted money -- one of the first to stabilize the money track. The business model he has promoted for many years has been formally incorporated into the legal framework through a bill signed by President Trump; and, thanks to the IPO launched in June this year by Circe, Allaire is now a billionaire。
However, the 54-year-old CEO still has difficulty gaining broad acceptance within the industry, and Circe is experiencing multiple shocks. Companies are in an exceptionally competitive market, and core sources of income are at risk of shrinking as interest rates fall; at the same time, the dominant rival - Tech, whose profitability and valuation are much higher than that of Circle - is returning to the United States market - is undoubtedly a dangerous signal for Circe's indigenous position。
Traditional bankers see Allaire as a threat, fearing that the currency will be stabilized and that bank deposits will be diverted, while their counterparts in the area of encrypted currency are far from being respectful of him. He was always the one in a suit at a trade meeting full of hoodie. More critically, he not only insisted on compliance, but also took the initiative to promote industry rules in the legislature。
In an industry that is proud of anonymity, unique personality and subversion of the traditional financial system, it is clear that such a concept cannot win the "human race" for Allaire。
“Jeremy Allaire’s strategic path has always run counter to the Bitcoin ecosystem,” says Cory Klipsten, the head of Swan Bitcoin, a Bitcoin investment platform, that “bitcoin’s goal is to separate the currency from the state, and his work is centred on integrating encryption into the existing statutory monetary system. I don't know
In spite of these questions, Allaire remains convinced that his strategy and Circe will eventually win. The company will release its financial report on Wednesday, which will be a new opportunity for him to prove the effectiveness of the strategy。
"To stay the course, you must have a firm belief in the importance of what you do and a deep moral foundation," said Allaire in his interview, "You will suffer a setback, and everyone will tell you that you are wrong and you will fail." But to me, it's not just a business plan -- I did it because I believed it would really improve the world. I don't know
Allaire ' s career in Circle, which was founded in 2013, has been full of setbacks。
Circle, originally a payment platform for the Itobitcoin network, has since adjusted its strategy several times, is on the verge of bankruptcy and is in financial distress as a result of the collapse of Silicon Valley Bank. In order to maintain the business structure of the USDC, Allaire eventually had to suffer through the sale of assets and the downsizing of hundreds of people。
"No one believes that I can survive the crisis in Circle," Allaire recalled, "but I've managed to figure it out." I don't know
Performance growth challenges
Today, the challenge for Allaire has shifted from "survival" to "prove growth."。
The main source of revenue for stable currency distributors such as Circle is the investment of reserves in short-term cash assets such as United States Treasury bonds. As interest rates decline, even if there is an increase in Circe ' s revenue, returns on investment per unit will almost certainly decrease。
In addition, the income-sharing agreement between Allaire and Coinbase Global Inc. has significantly squeezed Circle ' s profit space. In the second quarter of 2025, the distribution costs to be paid to Coinbase were more than three times the adjusted profit of $126 million for Circle. In contrast, Tether, which was not subject to equivalent rules and auditing requirements, disclosed a profit of $4.9 billion over the same period。
Top 5 by market value
In billions of United States dollars
Data source: CoinGecko
Tether's USDT was launched several years earlier than the USDC of Circle, and on a much larger scale than the latter — USDT's market value was US$ 183 billion, while USDC was only US$ 76 billion — so it had greater income capacity. In addition, Tether has links to the former Cantor Fitzgerald, who served as United States Secretary of Commerce Howard Lutnick。
Another new entry to the Stabilized Currency Companion, World Liberty Financial Inc., is linked to the Trump family. With the surge in the use of stable currency, hundreds of businesses, including Tether and World Liberty, are competing for the market share of Circle. Allaire stated in his recent newspaper conference call that this area is "the market for food for winners"。
At present, Allaire is trying to create new sources of revenue for Circle through other operations, but Wall Street analysts are generally sceptical about the effectiveness of this initiative. His recent attempts include the introduction of block chains, payment networks and monetized money market funds。
Despite this, Seo-ho's securities analyst Dan Dolev put it bluntly: "USDC is just another stable currency, nothing special. That's how it works. Of the analysts who followed Circle, 4 gave a "sale" rating, 11 gave a "buy-in" rating and 10 gave a "held" rating。
The current price of the Circe stock is approximately $104, which is much higher than the IPO issuance price of $31, but less than half of the post-market peak. Its market value of $24 billion is even less than the $500 billion valuation implied by the current financing activities of Tether。
Source of technology entrepreneurs
Although Allaire had previously led two companies on the market -- the software company Allaire Corp. and the video platform Brightcove Inc. -- it would almost certainly be the core legacy of his career。
Allaire's interest in technology began in childhood: When he was 11 years old, his family moved to Winona, a small town in Minnesota, and he and his brother, J.J., were children who were "a bit nerdy" in people's eyes. They'll print in the machine language, and they'll type it in the computer. "A single letter is lost, the program cannot run, so it must be extremely focused. He remembered。
When I was an adult, Allaire was completely involved in the Internet. He even helped political activist Noam Chomsky digitize his work. Since then, he has set up several start-ups. Shortly after leaving Brightcove, he and his best friend Sean Neville created Circle。
"I was always in his house," Neville said, "Our ultimate goal is to create a new financial system. I don't know
On 18 July 2025, United States President Trump held the signing ceremony of the GENIUS Act at the White House, which was attended by Circle CEO Jeremy Allaire (top right corner). Photographer: Francis Chung/ Politician/ Bloomberg
According to the Bloomberg billionaire index, Allaire's personal wealth currently stands at $2.1 billion, mainly from his shareholding in Circle. This figure, which is well below the $5.6 billion of Tech CEO Paolo Ardoino, is comparable to that of Apple, CEO Tim Cook, and CEO Larry Fink。
Allaire says he grew up in a family of progressive values -- both parents are engaged in social services and social activities. However, he welcomed the fact that he had attended the signing ceremony of the GENIUS Act in the White House and had shook the hands of Trump. The Act establishes a federal regulatory framework for currency stabilization。
"I'm honored and excited to be part of it," Allaire said, "The pen is in writing, the bill is in force, and I can play an important role in this process." This is one of the most significant moments in my life. I don't know
Public records show that Allaire has long been a major supporter of the Democratic Party, but that Circle has donated $1 million to Trump ' s inaugural committee。
Workstyle
A few years ago, Allaire launched a physical fitness programme: he stopped alcohol and started to focus on dietary health, and according to health applications, he now sleeps for an average of seven hours at night。
On June 5th, Jeremy Allaire attended the IPO ceremony at the New York Stock Exchange. Photographer: Michael Nagle / Bloomberg
Both current and former employees assessed Allaire as the " gentle but strict" owner -- he would not growl or tap the table, he would not work late in the office, but would respond quickly almost at any time. It was recalled that a strategic meeting was held with him during the forest walk。
Now Allaire is planning the next direction。
"Building a monetary layer on the Internet is the goal of phase 1.0," said Allaire, "We have achieved this and are now moving forward with phases 2.0 and 3.0." I don't know