Investing.com -- Circle Internet Group was upgraded to Buy from Hold by Clear Street, which raised its price target to $136 from $92, saying it sees more adoption of the company’s USDC stablecoin.

Growth in tokenized financial assets, new use cases in decentralized finance and improving regulatory clarity could expand USDC’s role as a settlement layer in digital markets.

USDC has shown resilience even as the broader cryptocurrency market weakened, with sector having declined about 44% since October 2025. But USDC’s market capitalization has recently reversed higher.

Tokenization of traditional assets is emerging as a key driver of demand, with USDC increasingly used to settle transactions in tokenized funds and other blockchain-based financial products.

There is also rising activity in decentralized finance prediction markets, driving additional USDC balances on trading platforms.

Geopolitical tensions in the Middle East could also support stablecoin demand, as users turn to digital dollars during periods of uncertainty.

Another potential source of demand is the intersection of artificial intelligence and programmable money. Automated systems built around AI could rely on stablecoins such as USDC for payments and settlement.

Clear Street also cited possible regulatory changes as a catalyst. It said public support from Donald Trump for the proposed CLARITY Act could increase the likelihood of stablecoin legislation in the U.S., which may reduce regulatory uncertainty and encourage greater institutional use.

The brokerage said the market may be underestimating the combined effect of tokenization, prediction markets, geopolitical factors and AI on USDC adoption.

Circle’s shares have been volatile over the past year. The stock fell from a peak of about $264 in June 2025 to roughly $50 in February 2026, an about 81% decline, before rebounding more than 100% to around $115. Even after the recovery, the shares remain well below their previous peak.