Circle, the USDC issuer, went public last week under the ticker CRCL. It was one of the most significant IPOs in recent times, as Hougan noted in a recent client memo. The IPO was oversubscribed by 25 times, priced higher than the indicated range at $31, and soared by 167% on the first day. According to The Block’s Circle price page, as of Tuesday’s close, the stock is trading at $105.91, giving it a market capitalization of $28 billion. This is roughly half the size of Coinbase and Robinhood.

Hougan describes stablecoins as the second killer application in the crypto space, behind Bitcoin, and points out that stablecoin AUM has grown from just over $4 billion to $250 billion in the past five years. The U.S. Treasury Department projects this could reach $2 trillion by 2030.

Hougan further argues that crypto-related stocks like Circle offer a classic application play. They leverage the infrastructure of public blockchains, paying only a small fee for the privilege. He also suggests that Circle and other crypto equities are using blockchains to create new businesses.

He concludes by stating, “We believe many parts of the crypto ecosystem will thrive over the long term in a symbiotic way. The core infrastructure will grow more valuable as more applications use it, and the applications will become valuable as the infrastructure continuously improves. It’s why I think the best way forward is to own them both.”

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