Raymond James, the US investment bank, has initiated coverage of Circle Internet Financial, the company behind the USDC stablecoin, assigning a Market Perform rating to the stock. The move signals a cautious but notable endorsement of the digital asset sector from a traditional financial institution, as Circle continues to expand its role in global payments and blockchain-based settlement.
Circle, which went public via a merger with a special purpose acquisition company (SPAC) in 2025, has positioned itself as a regulated issuer of stablecoins, a type of cryptocurrency designed to maintain a stable value relative to fiat currencies like the US dollar. The company's USDC token is the second-largest stablecoin globally, with a market capitalisation of over $30bn, and is widely used in decentralised finance (DeFi) and cross-border transactions.
Raymond James' Market Perform rating indicates that the bank expects the stock to perform in line with the broader market, neither outperforming nor underperforming significantly in the near term. The initiation of coverage comes amid a broader shift in institutional sentiment towards digital assets, as regulators in the UK and Europe move closer to establishing formal frameworks for stablecoins and cryptoassets.
For UK investors and pension holders, the development underscores the growing intersection between traditional finance and digital assets. While direct exposure to Circle may be limited for most UK retail investors, the company's performance is often seen as a bellwether for the wider crypto infrastructure sector, which could influence valuations of UK-listed fintech and blockchain firms. The UK's Financial Conduct Authority (FCA) is expected to publish further guidance on stablecoin regulation later this year, which could open the door for broader institutional adoption.
Analysts at Raymond James noted that Circle's revenue is heavily tied to the adoption of USDC for payments and settlements, as well as interest income from the reserves backing the stablecoin. However, they cautioned that regulatory uncertainty and competition from other stablecoin issuers, including those backed by major tech firms, remain key risks. The rating does not constitute a buy or sell recommendation, and investors are advised to conduct their own research.