Circle Internet Stock Jumps After Stablecoin Issuer Wins Approval for Trust Bank

Cathie Wood, chief of Ark Invest, has been buying shares of Circle Internet, despite a recent sell-off in its stock. The stablecoin issuer won approval to establish a trust bank, which could help it compete with rival stablecoins and expand into mainstream finance.

Wood's investment firm, Ark Invest, has made Circle one of its 12th-largest holdings, according to the company's latest filings. The stock has lost nearly 70% of its value over the past year, but Wood believes in its potential due to its strong liquidity and first-mover advantage.

Circle Internet is deeply integrated into decentralized finance (DeFi) protocols, crypto exchanges, and corporate treasury pilot programs. However, a serious threat could be looming: big banks are expected to roll out a tokenized deposit network next year through The Clearing House that will introduce blockchain to mainstream finance.