Two major developments in the crypto space are signaling a surge in institutional interest in yield-bearing digital assets and cross-chain DeFi infrastructure. Circle Internet Group, known for its stock topping the ETF charts, has emerged as the largest component of VanEck’s global crypto equity index following a meteoric post-IPO stock rally, while decentralized finance protocol Veda has raised $18 million to expand its vault platform. These milestones highlight the growing importance of stablecoins and DeFi innovations in shaping the future of finance.
Circle Dominates VanEck’s Crypto ETF Amid CRCL Stock Surge
Shares of Circle Internet Group (NYSE: CRCL), the company behind the widely-used USDC stablecoin, have skyrocketed to claim the top spot in VanEck’s MVIS Global Digital Assets Equity Index (MVDAPP). This benchmark tracks the largest and most liquid publicly traded companies in the crypto economy. As of Monday, CRCL stock now represents 13% of the index, surpassing industry giants like Coinbase (COIN) and MicroStrategy (MSTR).
This dominance reflects not only investor confidence in Circle’s explosive public market performance but also its strategic relevance within the broader digital asset sector. VanEck’s MVDAPP index underpins its Digital Transformation ETF, a fund launched in 2021 that mirrors the performance of crypto-exposed companies. To qualify, firms must derive at least 50% of their revenue from digital asset-related businesses. The ETF, with $210 million in net assets, includes names like Coinbase, Bitcoin-accumulating Strategy (formerly MicroStrategy), Metaplanet, and Jack Dorsey’s Block.
CRCL Stock Rockets 750% Above IPO Price
Circle’s rise is fueled by an extraordinary stock performance since its recent listing on the New York Stock Exchange. After pricing its IPO at $31, CRCL shares surged 167% on their first day and have since climbed over 750%, closing Monday above $263.
The company expanded its IPO size ahead of the debut to meet robust institutional demand—a decision that now appears prescient given the stock’s exceptional rally. This performance positions Circle as one of the most valuable publicly traded crypto firms globally.
Behind Circle’s success is its flagship product, USD Coin (USDC), the second-largest stablecoin by circulation after Tether’s USDT. USDC has become a cornerstone of the digital economy, powering decentralized finance (DeFi) applications, centralized exchange settlements, and more.
Circle’s momentum could accelerate further if the GENIUS Act clears Congress. This bipartisan bill, which aims to provide regulatory clarity for stablecoins, passed the Senate with a 68–30 vote and is now under House consideration. Additionally, Coinbase Derivatives and Nodal Clear announced plans to integrate USDC into U.S.-regulated futures markets as eligible collateral by 2026, bridging traditional finance and crypto.
A Bellwether for Crypto Institutionalization
Circle’s ascent underscores the maturation of the digital asset economy in the eyes of institutional investors. The ability of CRCL stock to outperform legacy crypto equities highlights a shift in focus—from pure-play exchanges or mining firms to infrastructure and utility providers.
Circle’s growing dominance in VanEck’s ETF reflects the increasing importance of stablecoin issuers in shaping the future of finance. As the market evolves from speculative assets to utility-driven frameworks—especially amid rising regulatory clarity in the U.S.—Circle is well-positioned to benefit from a new wave of adoption.
Circle’s success symbolizes a larger trend: the convergence of crypto-native innovation with traditional financial instruments. Its prominence within VanEck’s ETF portfolio not only signals investor conviction but may foreshadow a future where regulated stablecoins like USDC serve as the backbone of global payments, trading, and settlement systems.
Veda Raises $18M to Fuel Cross-Chain Yield Innovation
In parallel, decentralized finance protocol Veda has secured $18 million in fresh funding to expand its footprint in the onchain yield economy. The round was led by CoinFund, with significant backing from Coinbase Ventures, Animoca Ventures, BitGo, Mantle EcoFund, and GSR, among others.
Founded in 2024, Veda provides infrastructure for issuing cross-chain yield products, including yield-bearing stablecoins —a new category of digital assets challenging traditional financial instruments like bank savings accounts and money market funds. The funding will scale Veda’s vault platform, enabling asset issuers to tokenize and distribute DeFi products across multiple chains.
Veda’s vault protocol supports a range of DeFi use cases, including liquid staking tokens (LSTs), decentralized savings accounts, and synthetic stablecoins with built-in yield mechanisms. It already powers some of the largest vaults in the space, including Ether.fi’s Liquid, Mantle’s cmETH, and the Lombard DeFi Vault. According to DeFiLlama, Veda’s total value locked (TVL) has surpassed $3.3 billion, showcasing its rapid growth and adoption.
Unlocking Bitcoin’s Yield Potential
“Demand for dependable Bitcoin yield is high,” said Sun Raghupathi, Veda’s co-founder and CEO. “But harvesting even a modest few-percent yield is often complex and time-consuming.”
To address this, Veda partnered with Lombard, a developer focused on liquid-staked Bitcoin using Babylon, an emerging Bitcoin staking layer. This collaboration aims to unlock more efficient and accessible Bitcoin-based yield products, a sector that has historically lagged behind Ethereum in DeFi participation due to Bitcoin’s limited programmability.
Stablecoins Enter Their “iPhone Moment”
The stablecoin market is already massive and growing. Tether’s USDT leads with nearly $156 billion in circulation, followed by Circle’s USDC, which exceeds $61 billion, according to RWA.xyz.
However, Jeremy Allaire, Circle’s CEO, believes the market is just getting started. The addition of native yield—especially if programmable and transparent—could offer a compelling value proposition unmatched by traditional finance products. This is particularly true for users in emerging markets or those with limited access to high-yield banking options.
Big Names Back Veda’s Vision
The $18 million raise for Circle stock attracted not only institutional backing but also prominent angel investors, including the co-founders of Anchorage, Ether.fi, and Polygon —all key players in blockchain infrastructure and decentralized financial systems.
Their support underscores Veda’s cross-chain strategy and its vision for unlocking passive income opportunities across the crypto spectrum. By enabling asset issuers to create yield-generating instruments—whether backed by staked ETH, tokenized treasuries, or innovations like liquid Bitcoin—Veda aims to become a foundational layer of the onchain financial system.
Traditional financial institutions are already feeling the ripple effects of this shift. Yield-bearing stablecoins threaten to undercut the appeal of low-interest savings accounts, especially in regions where inflation and currency devaluation have eroded trust in fiat-based banking.
