William Blair Small-Mid Cap Core Fund on Circle Internet Group
Thesis
Circle operates the USDC stablecoin, a fully reserved U.S. dollar-backed digital currency issued across more than 30 public blockchains. The stock weakened during a broader cryptocurrency drawdown and after the announcement of a competing stablecoin, but the fund views these pressures as transitory. Circle continued to announce partnerships as more financial institutions and enterprises adopted stablecoins. The fund added to the position and believes Circle can capitalize on long-term expansion of the stablecoin market.
“We added to our position and continue to believe the company is well positioned to capitalize on the expanding stablecoin market”
Key risks
- Broader cryptocurrency market drawdowns
- Competitive pressure from new stablecoins