TL;DR
- Circle jumped up to 17% after receiving its first buy rating from Seaport Global, driven by the new U.S. stablecoin legislation.
- Seaport projects the stablecoin market will climb to $2 trillion, with the company growing revenue 25%-30% annually under that scenario.
- The stock has gained over 600% since its IPO in June and now targets $235.
Circle saw a sharp rise in its stock price after receiving its first buy rating from Seaport Global.
This decision followed the recent approval by the U.S. Senate of a bill setting specific rules for dollar-backed stablecoins. The company, behind USDC —the world’s second-largest stablecoin by market share— saw its shares jump as much as 17%, adding to a surge of over 600% since its public listing in early June.
Circle to Boost Revenue by 25%-30% Annually
Market optimism is driven by the growth potential that regulatory clarity could unlock for issuers like Circle. According to Seaport analyst Jeff Cantwell, the stablecoin market could expand to $2 trillion in the coming years, up from around $260 billion today. If that happens, Cantwell estimates that Circle would grow its annual revenue by 25%-30%. He also set a price target of $235 per share, close to the recent highs the stock reached.
The Senate’s approval of the bill also marks a political win for Donald Trump, who called on the House of Representatives to push the measure forward. In parallel, a Trump-linked project with World Liberty Financial has already reached a $2 billion market valuation. The expectation that this legal framework will encourage greater institutional adoption directly benefits companies like Circle, which could capitalize on growing demand for regulated, stable payment solutions.
Trump Backs the Crypto Industry
Back in April, Circle announced the launch of a payments network aimed at enabling cross-border stablecoin transactions for financial institutions. Cantwell sees this initiative as a catalyst to accelerate growth and strengthen the company’s industry position. Similarly, Shopify confirmed this month that it will roll out USDC payments for merchants and customers worldwide.
The market now views Circle as a direct competitor to traditional processors like Visa and Mastercard, both of which saw their shares slide after the stablecoin bill passed. At present, Circle holds one buy rating, one hold, and no sell calls.
