In an interview on CoinDesk’s Public Keys, Bitwise Head of Research Ryan Rasmussen said investors are severely underestimating Circle as the stablecoin market expands. He projects the total market capitalization could grow from roughly $300 billion to between $3 trillion and $5 trillion.
Circle’s Payments Infrastructure as a Hidden Growth Driver
Despite the recent launch of Open USD that sent Circle shares tumbling, major investors have continued to support USDC, underscoring confidence in Circle’s long-term trajectory. Top backers doubled down on USDC, indicating they see the stablecoin issuer as more than a reserve-based entity.
Rasmussen pointed out that the market is “very mispricing” Circle’s payments infrastructure, which he expects will become a major second business. Circle shares slid earlier after a Morgan Stanley downgrade flagged tokenized fund risks, but Rasmussen’s thesis focuses on the potential for Circle to rival global payment giants like Visa and Mastercard as stablecoin adoption accelerates.
Regulatory Tailwinds Strengthen Circle’s Position
Stablecoin regulation is taking shape in the U.S., and Circle stands to gain from its early compliance moves. Circle secured a New York trust charter, a regulatory milestone that could give it a wide moat as lawmakers craft new rules for the asset class. Combined with its existing market share, the regulatory green light positions Circle to capture a significant portion of the projected multi-trillion-dollar market.
If Rasmussen’s outlook holds, Circle would transform from a stablecoin issuer to a foundational payments infrastructure company, leaving the current market cap significantly undervalued.
