Recently, I communicated with former senior public relations executives from Baidu about the logic behind the surge of Circle.
First of all, Circle enjoys a unique compliance advantage, with its model supported 100% by cash and US Treasury bonds, establishing a strong foundation of trust. After going public, USDC increased its market share from 29% to about 40% through capital market effects, and this trend of market concentration will become more evident over time.
Secondly, it is worth noting that Circle's revenue structure is far from limited to the cryptocurrency field. The crypto market is just one of its business carriers; as a truly compliant fintech company, Circle's larger target market lies in traditional finance. Just by investing approximately $50 billion in reserve funds in Treasury bonds, it can generate considerable returns.
From a global market perspective, the scale of cross-border payments reaches up to $200 trillion. Even if stablecoins only occupy 1% of this market, it represents a huge opportunity for USDC.
The capital power behind it cannot be ignored either. In addition to its close relationship with Coinbase, Circle also has the support of Wall Street financial giants such as BlackRock, Fidelity, and Visa, forming a capital alliance that provides strong backing.
Recently, Chinese tech giants like Alibaba and JD.com have also been actively laying out in the stablecoin field, indicating that the listing of USDC has opened new possibilities for innovation in payment scenarios. USDC is essentially undergoing a transformation from cryptocurrency to a mainstream financial tool, with investors betting on USDC's establishment of an important position in global traditional cross-border payments.
Limiting Circle to a cryptocurrency perspective is too narrow. From the macro perspective of global financial innovation, Circle's current valuation level is indeed reasonable.
