Circle Internet Group Upgraded to Buy by Clear Street on USDC Growth Outlook

Group 1 - Clear Street upgraded Circle Internet Group (NYSE: CRCL) to Buy from Hold and raised its price target to $136 from $92, citing multiple catalysts expected to drive growth in USDC adoption [1] - The firm identified five key factors likely to expand USDC's market capitalization and usage, despite a 44% decline in broader cryptocurrency markets since October 2025 [1][2] Group 2 - Continued expansion of tokenized financial assets positions USDC as the default settlement layer within tokenized fund ecosystems [2] - Rising activity in decentralized finance prediction markets is generating additional USDC balances on platforms [2] - Geopolitical instability in the Middle East could accelerate demand for digital dollar assets [2] Group 3 - The convergence between AI agents and programmable stablecoins is expected to become a structural driver of demand for USDC [3] - Regulatory clarity, particularly public support from President Trump for the CLARITY Act, could increase the likelihood of near-term stablecoin legislation and reduce regulatory uncertainty [3] Group 4 - CRCL shares previously fell from a peak of $264 in June 2025 to around $50 in February 2026, an approximately 81% decline, before rebounding more than 100% to roughly $115 [4] - Despite the recovery, the stock remains about 56% below its peak, and the improving fundamental outlook strengthens the investment case [4] - The target price of $136 is based on a 30x EV/EBITDA multiple applied to its fiscal 2028 adjusted EBITDA estimate of $1.132 billion, plus $2.3 billion in net cash [4]