Bitwise's Ryan Rasmussen Forecasts Stablecoin AUM Surge to $5 Trillion
The Bitwise research head argues that Circle is currently mispriced as the sector shifts toward institutional payments.
Ryan Rasmussen, Head of Research at Bitwise, predicts a massive expansion of the stablecoin sector that could fundamentally reshape global financial rails. He argues that the market is currently mispricing Circle, the issuer of USDC, as the industry prepares for a transition from speculative trading to widespread institutional utility.
According to Rasmussen, assets under management (AUM) in the stablecoin market are poised to grow from approximately $300 billion to between $3 trillion and $5 trillion over the next five years. He specifically identifies the rise of stablecoin payments as a primary catalyst for this growth, noting that this shift will drive the sector toward the multi-trillion-dollar mark.
The Regulatory Shift
This forecast comes as the U.S. stablecoin market undergoes a critical transition toward formalized regulatory oversight. Circle has strategically positioned itself as a compliant alternative to offshore issuers by aligning its operations with emerging U.S. legal frameworks. This positioning is part of a broader trend where digital asset firms are increasingly pursuing public listings or deeper institutional integration to secure their market standing.
Implications for Global Finance
If stablecoin AUM reaches the trillions, it would signal a pivot in the digital asset ecosystem. The shift would move stablecoins away from being mere liquidity tools for traders and toward becoming primary instruments for global payments and settlement. For investors, Rasmussen’s view that Circle is "mispriced" suggests significant upside potential for those betting on the institutionalization of the sector. By capturing a larger share of this growth, compliant issuers could establish the dominant infrastructure for the next generation of financial transactions.
The Path Forward
As U.S. regulations are formalized, the market will likely watch whether Circle can successfully leverage its regulatory alignment to displace non-compliant competitors. While the growth trajectory appears steep, the actual realization of a $5 trillion market depends on the speed of regulatory adoption and the willingness of traditional financial institutions to integrate stablecoins into their core payment stacks. This transition would represent a fundamental shift in how value is moved globally, moving from legacy banking systems to programmable, instant settlement layers that operate 24/7.