Author: Hu Tao, ChainCatcher
Duan Yongping, a well-known investor known as the "Chinese Buffett," recently submitted his family wealth management firm, H&H International Investment LLC, to the U.S. Securities and Exchange Commission (SEC) for its first quarter 13F holdings report as of March 31, 2026.
According to the report, Duan Yongping's portfolio value has increased significantly from $17.49 billion in the previous quarter to $20.004 billion. In addition to continuing to hold large positions in Apple (AAPL), Berkshire Hathaway (BRK.B), and Nvidia (NVDA), a new face has attracted the attention of both the crypto industry and value investors: stablecoin giant Circle (NYSE: CRCL).
Although the $19.08 million investment represents only 0.2% of Duan Yongping's vast portfolio, this signal is highly symbolic. For a veteran value investor who has always invested only in companies he "understands, has a moat, and strong cash flow," the logic behind buying Circle is worth pondering.
From rejection to acceptance
As is widely known, Duan Yongping is one of China's most successful entrepreneur-investors, and one of the very few Chinese investors who have truly practiced Buffett-style value investing for a long time and achieved great success.
However, Duan Yongping has consistently maintained a cautious stance towards blockchain and Web3. Over the past few years, he has rarely publicly participated in the Web3 hype, nor has he discussed concepts like NFTs, DeFi, or public chains as frequently as some tech investors. Throughout Bitcoin's several cycles of boom and bust, Duan Yongping has also consistently shown no significant interest.
This is not surprising. Duan Yongping's core investment framework is essentially closer to Buffett's system: emphasizing long-term cash flow, understandable business models, brand and channel moats, and management quality. He particularly favors companies with strong consumer mindshare, high free cash flow, and long-term compounding ability, such as Apple, Kweichow Moutai, and Berkshire Hathaway.
However, most crypto projects in the past have struggled to meet these standards.
Many Web3 projects are highly dependent on token price-driven growth, have fragile business models, and unsustainable cash flow; the industry has also long been plagued by regulatory uncertainty, governance chaos, and cyclical bubbles. These characteristics are almost inherently at odds with the "certainty" emphasized by traditional value investors.
But Circle is an exception. Compared to many crypto projects that rely on "storytelling" or speculative behavior to maintain their valuations, Circle is more like a typical financial infrastructure company.
Why Circle?
Circle's core business is not cryptocurrency trading, but rather issuing the stablecoin USDC and earning interest income through reserve assets such as US Treasury bonds. Its profit model is actually closer to that of money market funds, payment clearing platforms, and even "digital dollar banks."
This also means that its revenue streams are highly predictable. Circle's latest Q1 2026 financial report further reinforces this point.
The financial report shows that Circle's total revenue in Q1 reached $694 million, a year-on-year increase of 20%, of which 94% came from reserve income; adjusted EBITDA reached $151 million, a year-on-year increase of 24%.
More importantly, its core business metrics are still expanding rapidly: USDC circulation reached $77 billion, a year-on-year increase of 28%; USDC on-chain transaction volume reached $21.5 trillion, a year-on-year surge of 263%.
This means that Circle has formed a relatively complete "stablecoin interest machine." During the period of high interest rates in the United States, the interest income generated by USDC reserves has grown rapidly, making Circle one of the few large companies in the crypto industry that truly has stable cash flow and can continue to be profitable.
Circle's funding history source: RootData
For investors like Duan Yongping who emphasize the "essence of business," Circle is finally beginning to present a form that is "understandable."
In late April, Circle also announced that its Layer 1 network Arc had completed a $222 million token pre-sale, valuing the company at $3 billion. a16z led the $75 million round, with participation from over ten institutions including BlackRock, Apollo Funds, Intercontinental Exchange (ICE), Standard Chartered Ventures, ARK Invest, and Bullish.
The expansion of the public blockchain network and the issuance of native tokens have further raised the ceiling for Circle's business, causing its stock price to soar. In May, Circle's stock price rose nearly three times from its year-to-date low of $50, briefly exceeding $140, before slightly retreating to $111.
The traditional financial system is becoming increasingly accepting of crypto assets.
Today, an increasing number of crypto companies are attempting IPOs. From trading platforms and stablecoin issuers to on-chain payment and custody infrastructure, a large number of crypto companies are actively entering traditional capital markets, hoping to gain more stable financing channels, a wider range of institutional shareholders, and stronger regulatory legitimacy.
Meanwhile, traditional financial giants are also entering the crypto space at an unprecedented pace. Whether it's BlackRock pushing for a Bitcoin ETF, traditional banks exploring stablecoin settlement and on-chain asset custody, or payment institutions connecting to the USDC network, they all essentially point to one thing:
The crypto industry is no longer just an independent "alternative market," but has begun to deeply integrate with the global financial system.
In this process, stablecoin companies, represented by Circle, are becoming the easiest bridge for traditional capital to understand and accept.
The significance of Duan Yongping's purchase of Circle lies precisely in this. It doesn't necessarily mean he's fully bullish on Web3, nor does it mean that value investing is embracing all crypto assets. But it at least demonstrates that stablecoins and on-chain dollar systems are beginning to enter the "circle of competence" of some traditional top investors.
From a broader perspective, Circle is just one of the pioneers in the crypto industry that has been "translated" into mainstream capital. As regulatory frameworks become clearer, infrastructure matures, and profit models are validated, more crypto-native companies like Circle will likely enter the mainstream capital market's field of vision in the future.
