Bernstein has reaffirmed its bullish outlook on Circle Internet Group, maintaining an Outperform rating and a $140 price target for Circle stock.
The investment firm believes expanding USDC adoption and continued growth across blockchain-based financial markets could support Circle even if the proposed CLARITY Act fails to advance through the U.S. Senate.
Bernstein Maintains Bullish Circle Stock Outlook
Bernstein analysts led by Gautam Chhugani reiterated their positive view on Circle following the stablecoin issuer’s second-quarter financial results.
The firm’s $140 Circle stock price target represents roughly 59% upside compared with the recent closing price of $87.98 cited in the report.
At the time of writing, Circle shares were trading near $89.20, gaining approximately 1.39%. That gave the company a market capitalization of about $22.64 billion.
Circle stock had also recently climbed more than 5% during a single trading session after experiencing pressure alongside the broader market.
USDC Supply Returns to Growth
One of the main factors supporting Bernstein’s outlook is renewed expansion in USDC supply.
USDC circulation increased by approximately $1.7 billion over the previous week after remaining largely unchanged for nearly six months.
The renewed growth could be important for Circle because USDC plays a significant role across several areas of the digital asset economy.
The stablecoin is widely used as a settlement asset and collateral across decentralized finance, tokenized assets, and prediction markets.
Further expansion in these markets could potentially increase demand for USDC and support Circle’s broader business growth.
Circle Reports $701 Million in Quarterly Revenue
Circle reported second-quarter revenue of $701 million, representing a 7% increase compared with the same period a year earlier.
However, revenue came in slightly below analyst expectations.
The company reported net income of $48 million, while earnings per share reached $0.18, exceeding market forecasts.
The results provide additional insight into Circle’s financial position as the company continues expanding its role within the stablecoin and blockchain payments sector.
Bernstein Says CLARITY Act Is Not Essential for Growth
Bernstein emphasized that its investment thesis for Circle does not depend on the CLARITY Act passing Congress.
The proposed legislation aims to create a more comprehensive regulatory framework for digital assets in the United States while clarifying responsibilities between federal regulators.
A Senate vote has been scheduled for September 15, but Bernstein believes Circle’s growth prospects can continue even if lawmakers fail to advance the legislation during that session.
According to the analysts, the current growth cycle is not dependent on the bill becoming law in September.
Regulators Could Act Even Without New Legislation
Bernstein also suggested that U.S. regulatory agencies could move more quickly to establish crypto rules if Congress does not pass the CLARITY Act.
That could provide another route toward greater regulatory clarity for companies operating within the digital asset industry.
For Circle, the broader regulatory environment remains important because the company’s USDC stablecoin operates at the intersection of traditional finance, cryptocurrency markets, and blockchain payments.
Stablecoin Payments Could Drive USDC Adoption
Bernstein identified several areas that could contribute to additional growth in USDC usage.
Among the most important are stablecoin payments, tokenized financial assets, and blockchain-based capital markets.
Stablecoins are increasingly being explored as a method for transferring value efficiently across digital financial networks.
If adoption continues to expand, Circle could benefit as one of the largest issuers in the stablecoin market.
Tokenization Creates Another Growth Opportunity
The growth of tokenized assets could also increase demand for stablecoins such as USDC.
Blockchain-based financial markets often require stable digital assets for settlement, collateral, and liquidity.
As more traditional financial instruments move onto blockchain infrastructure, stablecoins could play a larger role in connecting conventional markets with decentralized and tokenized financial systems.
Bernstein believes this trend could become another important growth driver for Circle.
Agent-Based Payments Could Open a New Market
The analysts also highlighted agent-based payments as an emerging opportunity.
Under this model, software agents or automated systems could use stablecoins to execute and settle transactions without requiring manual payment processing.
If automated digital payments become more widely adopted, stablecoins could become an important settlement mechanism for machine-to-machine transactions.
That could create another source of demand for USDC beyond traditional cryptocurrency trading.
What the $140 Circle Stock Target Means for Investors
Bernstein’s decision to maintain its $140 Circle stock price target reflects confidence that Circle can benefit from structural growth across the digital asset economy.
The firm’s thesis is centered less on a single regulatory event and more on the continued expansion of stablecoin payments, tokenization, blockchain capital markets, and automated financial transactions.
Renewed growth in USDC circulation could provide an early indication that demand is beginning to accelerate again.
For investors, the key factors to watch will be USDC supply growth, Circle’s financial performance, regulatory developments in Washington, and the broader adoption of stablecoins within global financial markets.
