JPMorgan's Bullish Bet: Circle's Stablecoins Power Next-Gen Global Finance

JPMorgan analysts have turned bullish on Circle Internet Group (CRCL), citing accelerated stablecoin growth and institutional adoption as key drivers for the digital asset issuer. Monness, Crespi, Hardt, a research firm, initiated coverage on Circle with a buy rating and a $150 price target, a 45% premium to its current $103.14 share price. The firm highlighted Circle's potential to bring a "meaningful, long-run chunk of M2 on chain," emphasizing stablecoins' role in enhancing global transaction efficiency and supporting U.S. dollar dominance.

The move follows a surge in USDC (Circle's stablecoin) circulation, which averaged $67.9 billion in Q3 2025, reflecting robust institutional demand amid a modest cryptocurrency market rebound. Analysts also noted a valuation disparity between Circle and rival Tether, with Tether's private market valuation at $500 billion versus Circle's market cap of $23.87 billion, suggesting undervaluation.

Circle's recent product launches further bolster its position. The company unveiled an institutional-grade on-chain foreign exchange engine, and the multi-currency stablecoin program, which supports regional stablecoin integration on its Arc blockchain. These initiatives aim to modernize the fragmented FX market by enabling 24/7 trading, real-time settlement, and reduced counterparty risk. The platform, now live on Arc's testnet, includes partnerships with Avenia (BRLA), Forte (AUDF), and others, expanding USDC's utility across global currencies.

Financial performance reinforced optimism. Circle reported $740 million in Q3 2025 revenue, exceeding analyst forecasts by 66%. USDC's market capitalization grew to $76 billion, though it still trails Tether's $184 billion. Bernstein SocGen Group reiterated an buy rating with a $230 price target, citing Circle's strong fundamentals despite "narrative battles" with bears.

While other JPMorgan analysts trimmed price targets for retail and real estate peers, the firm's broader market analysis highlighted AI-driven infrastructure demand as a $5 trillion investment opportunity. However, Circle's strategic pivot toward institutional-grade blockchain solutions positions it as a beneficiary of this trend, with StableFX and Arc's programmable infrastructure aligning with global financial modernization efforts.