Bitwise's Rasmussen: Circle is mispriced as stablecoins head toward trillions
Reported by CoinDesk · AI-assisted summary by ChikoCorp AI News Desk
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Summary
Bitwise Head of Research Ryan Rasmussen stated in a CoinDesk Public Keys interview that investors are undervaluing Circle’s potential as stablecoins grow toward a multi-trillion-dollar market. He expects the stablecoin market to expand from about $300 billion to between $3 trillion and $5 trillion. Rasmussen believes Circle is well positioned due to its current market share and the evolving U.S. stablecoin regulatory landscape.
Why it matters
The source highlights that Circle’s opportunity extends beyond reserve revenue to becoming a major player in payments infrastructure in a stablecoin-driven financial system. This shift matters because it could position Circle similarly to global payment networks like Visa and Mastercard, changing market perceptions and potentially impacting investment strategies.
Key context
Stablecoins currently total around $300 billion but are anticipated to grow significantly. Circle is developing its Arc blockchain, a layer-1 blockchain intended to support stablecoin payments. Competition from banks and consumer companies launching their own stablecoins exists, but Rasmussen believes the overall market growth will allow Circle to maintain a leadership role as regulation shapes the sector.
Key numbers and entities
Ryan Rasmussen (Bitwise Head of Research), Circle (stablecoin issuer), OpenUSD (a new stablecoin initiative), Visa and Mastercard (payment giants used as comparators), Arc blockchain (Circle’s layer-1 blockchain project). The stablecoin market size is currently about $300 billion and projected to reach $3 trillion to $5 trillion.
What remains unclear
The source does not flag open questions.