Clear Street: "Circle’s plunge is overdone…growth drivers remain intact"

JH Kim

Summary

Clear Street said the sharp drop in Circle shares on stablecoin regulatory concerns was an overreaction.
Owen Lau said strategic demand for USDC remains solid and that adoption momentum is unlikely to slow.
Clear Street cited tokenization and artificial intelligence (AI)-based payments as growth drivers, while keeping its $152 price target on Circle.

Forecast Trend Report by Period

An analysis said the market reaction was excessive after Circle’s shares tumbled on stablecoin regulatory concerns.

According to crypto-focused outlet Decrypt on the 25th (local time), Clear Street investment banking analyst Owen Lau said, "Even if interest payments on stablecoin balances are banned, the pace of USDC adoption will not slow."

He added, "While near-term earnings expectations could fall somewhat, strategic demand for USDC remains solid."

He then pointed to tokenization, artificial intelligence (AI)-based payments, prediction markets, and broader institutional participation within regulated payment systems as key growth drivers.

Clear Street maintained its price target on Circle at $152.