Clear Street has elevated its rating on Circle Internet Group to Buy from Hold and raised the firm's price target to $136 from $92, citing expectations of greater adoption of the USDC stablecoin as the primary rationale.
The brokerage described multiple pathways through which USDC could gain traction. It pointed to growth in tokenized financial assets and new use cases within decentralized finance as factors that could broaden USDC's role as a settlement layer in digital markets. Clear Street also argued that improving regulatory clarity could help institutional participants feel more comfortable using stablecoins for settlement.
USDC has displayed resilience amid a weak broader cryptocurrency backdrop. The wider sector has fallen about 44% since October 2025, yet USDC's market capitalization has recently moved higher, according to the brokerage's assessment.
Tokenization of traditional assets was singled out as a key source of demand: Clear Street said USDC is increasingly being used to settle transactions in tokenized funds and other blockchain-based financial products. The report also noted growing activity in decentralized finance prediction markets, which has contributed to additional USDC balances on trading venues.
Geopolitical dynamics were included among the demand drivers. Clear Street suggested that tensions in the Middle East could encourage some users to prefer digital dollars during periods of uncertainty, supporting stablecoin balances. The firm also identified the intersection of artificial intelligence and programmable money as another potential upside - automated AI-enabled systems could rely on stablecoins like USDC for payments and settlement.
Regulatory developments were highlighted as a potential catalyst. Clear Street referenced public support from Donald Trump for the proposed CLARITY Act and said such backing could raise the odds of stablecoin legislation in the United States. That, the brokerage argued, might reduce regulatory uncertainty and facilitate increased institutional adoption.
The brokerage concluded that the market may be underestimating the combined impact of tokenization, prediction markets, geopolitical considerations and AI on USDC adoption.
Circle's stock has shown pronounced volatility over the past year. The shares fell from a peak of about $264 in June 2025 to roughly $50 in February 2026 - an approximately 81% decline - before recovering by more than 100% to trade near $115. Even after that rebound, the share price remains substantially below the earlier peak.
Note: This analysis is based on Clear Street's published view and the market movements described above.