Circle’s Stock Retreats 15% Amid BIS Warning on Stablecoin Risks

Circle's (CRCL) high-flying shares tumbled 15% on Tuesday, extending a retreat from Monday's record high of $299. The stablecoin issuer's stock now sits 25% below its peak, though remains up over 600% since its IPO earlier this month. Ark Invest has unloaded more than $300 million worth of shares since the debut, with analysts flagging valuation concerns.

The pullback coincided with a stark warning from the Bank for International Settlements. "Stablecoins as a FORM of sound money fall short," the central bank umbrella group declared, citing risks to financial stability and monetary sovereignty. The BIS dismissed stablecoins' ability to maintain parity with fiat currencies or handle liquidity crunches, instead advocating for tokenized traditional assets as finance's "next logical step."