Circle stock (CRCL) rallied for a third day in a row on Monday as investor enthusiasm over stablecoins continued to surge.
Shares jumped as much as 20% before paring gains, building on an 80% rally last week after the Senate passed legislation that provides a federal framework for stablecoins, which are digital tokens backed by assets such as the US dollar. Shares finished up nearly 10%.
Wall Street strategists also pointed to deal-making in the digital asset space as another tailwind for the issuer of USDC stablecoins (USDC-USD).
On Monday, fintech firm Fiserv (FI) announced plans to launch a digital asset platform, including a new stablecoin (FIUSD) by the end of this year using existing infrastructure from issuers Paxos and Circle.
“For CRCL, we like seeing its inclusion as a leading partner of FI as FI develops its own stablecoin – this is a nice ‘win’ for CRCL which highlights the company’s ongoing rise,” Seaport Research Partners analyst Jeff Cantwell wrote in a note on Monday.
Last week, Cantwell initiated Circle with a Buy rating and a price target of $235. Shares are up more than 800% from their IPO price of $31 on June 5.
“We view Circle as a top-tier crypto ‘disruptor’ with a sizeable future opportunity,” Cantwell wrote last Friday, noting that the company will benefit from an improving regulatory climate in the US.
The stock surged last Wednesday following the Senate’s passage of the GENIUS Act, legislation which Wall Street expects to be passed by the House and signed by the President this year.
“Circle’s success isn’t just about one company doing well,” said Anthony Georgiades, founder of Innovating Capital, a firm focused on early-stage investments across crypto, AI, and deep tech.
“It’s a clear validation of stablecoins as a core piece of the digital asset ecosystem and shows that crypto is gaining legitimacy with the broader financial world,” he added.
Read more about Circle’s stock moves and today’s market action.
Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X at @ines_ferre.
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