Circle Internet Group's (NYSE:CRCL) shares surged 17% on Thursday, fueled by growing investor interest in the stablecoin sector.
The stock's upward momentum coincides with Circle's USDC stablecoin reaching approximately $72 billion in circulation, marking a remarkable 107% year-over-year increase, as noted by Canaccord Genuity analyst Joseph Vafi. USDC's circulation has also grown about 16% quarter-to-date, surpassing analyst forecasts.
Vafi attributes this impressive growth to the increasing activity in digital assets, especially within the crypto capital markets over the recent months. He also observed that the current level of USDC circulation is nearing Canaccord's forecasts for the first quarter of 2026.
Adding to the momentum is the recent enactment of the GENIUS Act, which recognizes compliant stablecoins like USDC as equivalent to cash by the U.S. Government. The law positions stablecoins as a potential "money layer" for the internet, with USDC maintaining a strong early market advantage.
James Marple from TD Cowen emphasized the transition of stablecoins from mere crypto-asset trading tools to integrated components of the U.S. financial system. He pointed out that digital stablecoin technology has the potential to enhance the speed, cost-efficiency, and reliability of cross-border payments.
The GENIUS Act mandates that U.S. payment stablecoins be fully backed by secure, liquid assets and subjected to stringent audits, aiming to instill trust and prevent collapses that have previously shaken the industry's confidence.
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