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.
The brokerage said its upgrade was based on five key factors likely to expand USDC’s market capitalization and usage even amid a roughly 44% decline in broader cryptocurrency markets since October 2025.
The firm pointed to the continued expansion of tokenized financial assets, with USDC increasingly serving as the default settlement layer within tokenized fund ecosystems.
Additional growth drivers include rising activity in decentralized finance prediction markets, which are generating additional USDC balances on platforms, as well as geopolitical instability in the Middle East that could accelerate demand for digital dollar assets.
Clear Street also highlighted the emerging convergence between AI agents and programmable stablecoins, which it believes could become a structural driver of demand for USDC.
Regulatory clarity is another potential catalyst. The firm cited public support from President Trump for the CLARITY Act, which could increase the likelihood of near-term stablecoin legislation and reduce regulatory uncertainty, potentially unlocking broader institutional participation.
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.
Despite the recovery, the stock remains about 56% below its peak, and Clear Street believes the improving fundamental outlook strengthens the investment case.
The firm’s $136 target price 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.
