Bitwise's Rasmussen: Circle Is Mispriced as Stablecoins Head Toward Trillions

Bitwise Head of Research Ryan Rasmussen argues that investors are underestimating Circle's growth potential as the stablecoin market scales toward a multi-trillion-dollar valuation and the company expands its payments infrastructure.

Circle, the issuer of USDC — one of the largest stablecoins by market capitalization — went public amid growing investor interest in digital-asset infrastructure companies. Rasmussen's bullish stance reflects a broader debate over how to value firms whose core businesses sit at the intersection of crypto and traditional finance.

A Multi-Trillion-Dollar Opportunity

Speaking in an interview on CoinDesk's Public Keys, Rasmussen said he expects the stablecoin market to grow from approximately $300 billion today to between $3 trillion and $5 trillion. Circle, as a leading issuer, is particularly well positioned as U.S. stablecoin regulation takes shape, benefiting from its existing market share as a head start over potential new entrants.

"I think we'll look back five years from now and Circle will be not only a stablecoin giant, but a payment giant," Rasmussen said.

Beyond Reserve Revenue

Rasmussen's thesis extends well beyond the idea that a larger stablecoin supply translates into more reserve revenue for Circle — the interest earned on the dollar-denominated assets, such as Treasury bills, that back its tokens. He sees payments infrastructure becoming a major second business line for the company, which is actively building systems designed to facilitate payments within a stablecoin-driven financial system.

That expansion is being "very mispriced by the market," according to Rasmussen, because investors remain primarily focused on Circle's reserve-based business model. He compared Circle's potential trajectory to global payments networks such as Visa and Mastercard.

Competitive Landscape

Banks, consumer-facing companies, and other incumbents are preparing to launch their own stablecoins, but Rasmussen does not view this as a meaningful threat to Circle. He argued that the overall market is expanding rapidly enough for Circle to continue growing even as additional competitors enter the space.

Rasmussen pointed to new stablecoin initiatives such as OpenUSD as evidence of growing interest from established institutions. Circle's key advantage, he said, lies in its demonstrated ability to keep executing as the regulated stablecoin market matures.

Arc Blockchain and What Comes Next

Circle's Arc blockchain could serve as a critical test of whether the company can successfully extend its business beyond stablecoin issuance and into the infrastructure that facilitates their movement. Rasmussen described Arc as a layer-1 blockchain designed specifically to support stablecoin payment activity.

Investors should watch whether that infrastructure gains adoption and becomes integrated into the traditional financial system, he noted. The central question over the next year, according to Rasmussen, is how Circle's economics evolve as stablecoin adoption accelerates and its new infrastructure gains traction.

Source: CoinDesk