Beware Stablecoin Hype in $6 Billion Circle IPO: Lionel Laurent

A dollar is a dollar, whether spat out by an ATM or digitally issued on the blockchain. That’s the promise of Circle Internet Group Inc., one of the biggest issuers of stablecoins designed to emulate fiat money like the greenback or the euro, primarily for the purpose of cryptocurrency trading. With hype around the mainstream potential of these tokens now at fever pitch, Circle’s planned stock-market listing may yet raise questions over whether all dollars really are created equal.

Circle’s prospectus contains plenty of blockchain jargon but nonetheless tells the story of a relatively straightforward business model, somewhat similar to a money-market mutual fund. To ...