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JPMorgan's Circle Enhancement Reflects Institutional Confidence in Stablecoin Prospects

JPMorgan's Circle Enhancement Reflects Institutional Confidence in Stablecoin Prospects

Bitget-RWA2025/11/13 13:26
By:Bitget-RWA

- JPMorgan upgrades Circle to "overweight" with $100 target, citing Q3 revenue surge and USDC's 66% YoY reserve growth. - Circle's USDC now dominates $73.7B market share, outpacing USDT through VISA/Deutsche Börse partnerships and regulatory clarity. - Arc testnet and CPN's 29 institutional clients highlight Circle's push to integrate stablecoins into mainstream finance. - Analysts remain divided: Bernstein forecasts 2027 USDC tripled supply, while Tiger Securities raises $140 target despite margin pressur

JPMorgan Chase & Co. has revised its outlook on

Internet Group (NYSE: CRCL), moving its rating from "underweight" to "overweight," indicating a notable change in institutional perspective regarding the stablecoin company. Analyst Kenneth Worthington led the upgrade, setting a new price target of $100, which points to anticipated outperformance in a market where Circle's shares have . This adjustment comes after a strong third quarter, during which the firm and reserve income—a 66% increase from the previous year—fueled by a 108% jump in circulation, now reaching $73.7 billion.

JPMorgan's Circle Enhancement Reflects Institutional Confidence in Stablecoin Prospects image 0
Circle's third-quarter performance highlighted its expanding influence in global finance, with USDC adoption accelerating in payments, cross-border transfers, and institutional frameworks. The stablecoin's presence in the market has grown as it , bolstered by regulatory progress and key alliances with organizations like VISA, Deutsche Börse Group, and Itaú. emphasized Circle's success in embedding stablecoins into traditional financial systems, noting that USDC's could enable it to "replace fiat" in digital commerce.

The company's forward-looking strategies further enhance its long-term outlook. In October, Circle introduced its Arc public testnet, drawing over 100 participants from both traditional finance and crypto industries. This Layer 1 blockchain, built for programmable finance, is being considered for a native token to encourage ecosystem expansion. Furthermore, the Circle Payments Network (CPN) has

, with another 500 in the pipeline, supporting $3.4 billion in annualized transaction volume. These initiatives are in line with by 2027, potentially capturing a third of the global stablecoin market.

Analyst opinions are still varied but show growing optimism. Monness, Crespi, Hardt began coverage with a "Buy" recommendation and a $150 price target,

. In contrast, Compass Point kept a "Sell" rating with a $92 target, while Tiger Securities increased its target to $140 despite projecting lower reserve income. and Bernstein's "Outperform" at $230 illustrate differing perspectives on valuation and growth prospects.

The market environment remains intricate. Although Circle's adjusted EBITDA climbed 78% to $166 million in the third quarter,

—largely due to higher USDC balances on platforms like Coinbase—have led some investors to be cautious. JPMorgan described these issues as "strategic investments" rather than fundamental problems, stressing Circle's ability to manage both expansion and profitability.

The stablecoin sector as a whole is also undergoing changes, with

that utilizes USDC for settlements. Alongside regulatory developments such as the U.S. GENIUS Act, these changes point to a maturing landscape where Circle's institutional reputation and diverse offerings may encourage broader adoption.

As Circle deals with short-term market swings and lockup expirations,

, with shares trading around $98 as of midday on November 12. The company's emphasis on expanding USDC's applications and Arc's potential to reshape financial infrastructure suggests it could play a key role in the shift toward digital currencies—a narrative that is gaining momentum among major Wall Street players.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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