Citi Sees 30% Upside In Circle Stock, Backs USDC Issuer As Key Player In Stablecoin Market

Circle Internet Group Inc. CRCL, the issuer behind USDC USDC/USD, has been a standout in the stock market this year, and the latest endorsement from Citigroup Inc. C suggests that the company’s upward trajectory is far from over.

Check out the current price of CRCL stock here.

What Happened: Citi has initiated coverage of Circle stock with a Buy rating and a price target of $243, representing a potential 30% increase from its current value, reported The Street on Sunday.

The analysts at Citi are optimistic about the future of stablecoins and see Circle as a leading force in this space.

According to Citi, Circle’s strong position in the growing stablecoin sector and its potential to become the primary platform for programmable payments are key factors driving this recommendation.

The analysts also highlighted the potential impact of the GENIUS Act on Circle’s value proposition, as well as the significant institutional interest in USDC, with BlackRock BLK now holding approximately 10% of Circle.

The global stablecoin market has surpassed $250 billion in circulation, with monthly trading volumes reaching $700 billion.

As per the report, if Circle can scale its fee revenue from transactions and increase its yield income on reserves, analysts expect double-digit compound annual sales growth in the foreseeable future.

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Why It Matters: Circle’s recent moves have been indicative of its ambition to expand its reach and solidify its position in the market. The company last week struck a revenue-sharing agreement with Bybit, the world’s second-largest crypto exchange, to increase the reach of its USDC token.

Circle has also reportedly been planning to integrate USDC with Ant Group, a Chinese fintech giant backed by Jack Ma.

Circle’s IPO has also been likened to a pivotal moment in the crypto industry, with Cathie Wood of ARK Invest drawing parallels between the Circle IPO and the ‘ChatGPT moment’ in the crypto industry, suggesting that institutional investors can no longer ignore the convergence of artificial intelligence and blockchain.

Price Action: At the time of writing, Circle’s stock is trading at $187.10, down 0.12% during the pre-market hours.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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