H&H International Investment LLC, the family wealth management firm of renowned investor Duan Yongping, filed its first-quarter 13F holdings report with the U.S. Securities and Exchange Commission covering the period ending March 31, 2026. The filing reveals a substantial portfolio expansion, with total market value rising from $17.49 billion in the prior quarter to $20.004 billion. While maintaining significant positions in established tech and industrial giants like Apple, Berkshire Hathaway, and Nvidia, the report highlights a strategic entry into the cryptocurrency sector through an investment in Circle, the issuer of the USDC stablecoin. This move marks a pivotal shift for an investor historically known for strict adherence to traditional value investing principles.

The specific allocation to Circle totals $19.08 million, representing approximately 0.2% of the total portfolio. Although the percentage is modest, the symbolic weight of the transaction is profound for the intersection of traditional finance and digital assets. Duan Yongping has long been characterized by a cautious stance toward blockchain technology, rarely engaging with speculative concepts such as NFTs or decentralized finance protocols during previous market cycles. His investment framework, deeply rooted in the Buffett system, prioritizes businesses with understandable models, durable competitive moats, and robust free cash flow generation. Historically, the volatility and regulatory ambiguity of the crypto sector have placed it outside his circle of competence.

Circle distinguishes itself from typical crypto projects by operating as a financial infrastructure entity rather than a speculative vehicle. Its core revenue model relies on issuing the USDC stablecoin and earning interest income from reserve assets, primarily U.S. Treasury bonds. This structure mirrors that of money market funds or payment clearinghouses, offering a level of predictability absent in token-driven projects. Data compiled by Woofun AI shows that Circle's financial performance in Q1 2026 underscores this stability, with total revenue reaching $694 million, a 20% year-on-year increase.

Notably, 94% of this revenue was derived from reserve income, while adjusted EBITDA climbed 24% year-on-year to $151 million.

Beyond revenue figures, the operational metrics indicate rapid scaling of the USDC ecosystem. The circulating supply of USDC expanded to $77 billion, reflecting a 28% year-on-year growth. More strikingly, the on-chain transaction volume for USDC surged to $21.5 trillion, a staggering 263% increase compared to the previous year. These figures demonstrate that Circle has successfully established a self-reinforcing interest generation machine. In the current high-interest-rate environment, the yield generated from USDC reserves has become a primary profit driver, positioning Circle as one of the few crypto-native enterprises capable of delivering consistent, auditable profitability.

Further validating the company's trajectory, Circle announced in late April that its Layer-1 blockchain network, Arc, completed a token presale raising $222 million at a $3 billion valuation. The round was led by a16z with a $75 million commitment, alongside participation from major institutional players including BlackRock, Apollo Funds, Intercontinental Exchange, Standard Chartered Ventures, ARK Invest, and Bullish. This institutional backing, combined with the expansion of its public chain capabilities, has driven significant appreciation in Circle's equity value. Following a low point of $50 earlier in the year, the stock price nearly tripled to briefly exceed $140 before stabilizing around $111 in May.

The investment by Duan Yongping signals a broader trend where traditional financial systems are increasingly accepting crypto assets as legitimate infrastructure. The crypto industry is transitioning from an isolated alternative market to a deeply integrated component of the global financial architecture. Major entities, from asset managers promoting Bitcoin ETFs to banks exploring on-chain custody, are actively bridging this gap. Woofun AI notes that stablecoin issuers like Circle serve as the most accessible entry point for traditional capital due to their regulatory clarity and familiar business models. This acquisition does not imply a wholesale embrace of all crypto assets but confirms that the on-chain dollar system has entered the investment thesis of top-tier value managers.

As regulatory frameworks mature and profit models are further validated, the path for crypto-native enterprises to access traditional capital markets will likely widen. Circle stands as a pioneer in this translation process, proving that digital asset infrastructure can meet the rigorous standards of long-term value investors. The convergence of these sectors suggests that future capital flows will increasingly target projects with tangible cash flows and clear utility, moving away from pure speculation toward sustainable financial engineering.