What Is CRCLX? Circle’s Tokenized Stock Brings a New On-Chain Paradigm

Who is Circle?

When it comes to Circle, many users first think of the issuer of the USDC stablecoin. Circle Internet Group is a representative enterprise of the integration of Web3 and traditional finance, dedicated to promoting “on-chain dollars” and the on-chain financial ecosystem.

Against the backdrop of ongoing rumors about IPOs in the US stock market, Circle’s valuation and influence continue to rise. As a result, its equity value has attracted considerable attention in the crypto market.

What is CRCLX?

CRCLX is an on-chain tracking certificate that tracks the stock price performance of Circle Internet Group, essentially a form of tokenized stock. It does not directly represent equity ownership, but its price is anchored to changes in the valuation of Circle.

CRCLX is issued by a regulated asset custodian, designed to allow users to access the market fluctuations of Circle without the need for a traditional securities account, through an on-chain trading platform.

Technical structure of CRCLX: SPL and ERC-20

CRCLX is issued simultaneously on the Solana chain (SPL standard) and the Ethereum chain (ERC-20 standard), possessing good cross-chain circulation capability.

• SPL Version: Suitable for fast speed and low transaction fee Solana application scenarios
• ERC-20 Version: Easy to integrate with existing DeFi protocols, wide user coverage.

This “dual-chain issuance” model greatly enhances the liquidity and compatibility of CRCLX, allowing users to choose their interaction method based on their on-chain preferences.

What are the use cases for CRCLX?

1. On-chain trading: Users can trade the CRCLX/USDT pair directly on supported platforms (such as Gate).
2. Price Hedging: Users who are optimistic or pessimistic about the valuation of Circle can use CRCLX for volatility speculation.
3. Asset Allocation: It is an asset complement that connects the world of cryptocurrency and stocks, suitable for investors looking to position themselves in Web3 giant companies.
4. DeFi Collateral or LP: In some protocols, CRCLX is expected to be used as a liquidity providing asset or collateral.

Where can I trade CRCLX?

Figure:https://www.gate.com/trade/CRCLX_USDT

Currently, CRCLX has been launched in the Gate xStocks section, allowing for long and short operations through the CRCLX/USDT perpetual contract, supporting up to 10x leverage.

In addition, more DeFi protocols and CEX platforms may be supported for circulation in the future, gradually improving its market depth and trading entry.

Risk Warning and Summary

Although CRCLX offers a novel way to access assets, its price performance is still influenced by various factors such as Circle’s IPO, secondary market expectations, and regulatory policies. Investors should be clear: CRCLX is a “tracking certificate” and does not grant holders actual shareholder rights. At the same time, its trading price may also deviate from its true valuation.

Summary: CRCLX is one of the bridge products that connects the value of traditional enterprises with the crypto ecosystem, suitable for users who are optimistic about Circle’s future development and prefer on-chain operations. As Circle’s IPO approaches, the trading value of CRCLX may gradually be released.