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The once-untamed realm of digital assets has transformed into a domain characterized by organized governance, scrutinized financials, and scalable revenue structures.
Exchanges that initially began as weekend ventures now resemble conventional financial entities, complete with compliance divisions, investor relations teams, and long-term capital strategies. “We are now prepared for an IPO,” MEXC chief operating officer (COO) Tracy Jin remarked to Cointelegraph.
On June 5, Circle, the issuer of the USDC (USDC) stablecoin, secured $1.1 billion in its public unveiling, surpassing forecasts and achieving a record-breaking 167% increase on its inaugural trading day.
On June 6, Gemini, the exchange established by Cameron and Tyler Winklevoss, also submitted a confidential application for a US listing, soon followed by a similar submission from Bullish, the digital asset exchange supported by billionaire investor Peter Thiel, on June 10.
“Enhanced market sentiment is the foundation of a successful launch,” Jin stated, highlighting the influx of capital into spot Bitcoin (BTC) and Ether (ETH) ETFs in the US as a driving force. The bullish market landscape has driven valuations upward and created a wealth effect for early investors, opening the IPO window.
Related: Tether CEO dismisses IPO, claims $515B valuation is ’somewhat pessimistic’
Regulatory clarity enhances IPO excitement
However, sentiment alone isn’t propelling the trend. According to Jin, the long-awaited regulatory clarity is playing a pivotal role. Frameworks like Markets in Crypto-Assets Regulation (MiCA) in Europe and US ETF approvals have mitigated the risks for institutional investors.
“For years, the uncertainty in jurisdictions such as the United States made public market investors hesitant,” she observed. The new regulations may not be exhaustive, but they provide sufficient structure to validate listings in the eyes of Wall Street.
MEXC’s COO is convinced the industry itself has significantly matured. “Crypto is no longer an emerging industry operated from garages,” Jin claimed. With reviewed financials, established governance, and sustainable revenue from custody, staking, and trading, crypto enterprises are now “prepared for IPOs.”
Regarding which types of firms will lead this new IPO phase, Jin envisions infrastructure and fintech-adjacent companies at the forefront. Blockchain analytics, staking services, and secure custody providers will be among the prime contenders, along with stablecoin issuers.
“The momentum is sustainable, but it will be selective,” she stated. “Firms with clear, defensible business models that resemble tech or fintech more than a mere wager on token values will be the most prosperous.”
Asia poised for crypto growth
Asia may emerge as a center of activity. Jin highlighted Metaplanet’s Bitcoin treasury initiative as an indicator of increasing regional adoption. “It’s no longer just a MicroStrategy narrative,” she remarked, noting that worries about currency devaluation in Japan have made BTC an appealing hedge.
She also foresees a future for crypto-linked financial innovation. Strategy’s utilization of convertible notes to provide yield with upside potential has established a precedent. “I fully anticipate seeing a wave of structured products from prominent banks like Goldman Sachs and JP Morgan,” Jin expressed.
This doesn’t imply that institutions are prepared to hold crypto on their balance sheets en masse, but it is a step in that direction. Jin views these instruments as “a model for mainstream acceptance” that starts as a niche approach and progressively builds institutional confidence with the asset class.
Magazine: China facing threats from US stablecoins, G7 urged to address Lazarus Group: Asia Express
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