Circle undervalued as stablecoin market nears $1 trillion, says Bitwise analyst

Bitwise analyst Ryan Rasmussen suggests that the market is mispricing Circle, the issuer of the USDC stablecoin, as the total stablecoin market capitalization moves toward a projected $1 trillion. While investors often view Circle primarily as a stablecoin issuer sensitive to interest rate changes, Rasmussen argues the company is evolving into a critical payments infrastructure provider.

Circle currently holds over $60 billion in assets backing its stablecoin. The company is expanding its reach through partnerships with traditional payment processors and developing institutional-grade payment plumbing. This shift aims to move revenue models from interest income on reserves toward transaction-based fees driven by stablecoin use in DeFi, derivatives, and cross-border settlements.

The future trajectory of the company remains tied to the regulatory landscape in the United States. Ongoing legislative debates regarding crypto regulation will determine whether non-bank issuers like Circle receive clear legal standing or if the framework favors large banks with easier access to stablecoin issuance.