Bitwise: Circle Is Greatly Undervalued, May Become Both a Stablecoin and Payments Giant in the Future

Bitwise Head of Research Ryan Rasmussen said that as the stablecoin market expands to a multi-trillion-dollar scale, investors are underestimating Circle’s growth opportunities. He projects the stablecoin market will grow from its current roughly $300 billion size to $3 trillion to $5 trillion, adding that with the gradual formation of the U.S. stablecoin regulatory framework, Circle holds a first-mover advantage thanks to its existing market share. Rasmussen noted that Circle’s opportunities extend beyond earning more reserve revenue as stablecoins scale; the firm is building payment infrastructure for the stablecoin financial system, a segment the market is “severely undervaluing.” He stated: “Looking back in five years, Circle won’t just be a stablecoin giant—it’ll also be a payments giant,” comparing its potential development path to global payment firms like Visa and Mastercard. On competition from traditional institutions such as banks and consumer companies launching their own stablecoins, Rasmussen does not view this as a major threat to Circle. He argued that the overall market growth pace is likely sufficient for Circle to continue expanding even as competitors rise, with the key being the company’s ability to consistently execute as the regulated stablecoin market develops. Additionally, Rasmussen said Circle’s Arc blockchain will test whether the firm can expand beyond stablecoin issuance into payment infrastructure. Over the next year, what merits attention is whether Arc gains adoption and integrates with traditional financial systems, and how Circle’s business model will evolve as stablecoins become more mainstream and new infrastructure grows.