US Tiger Securities has reiterated its Buy rating on shares of Circle Internet Financial, the company behind the USDC stablecoin, in a note published this week. The brokerage’s reaffirmation underscores continued confidence in Circle’s business model as the digital payments sector matures and regulatory frameworks take shape in both the US and Europe.
Circle has become a central figure in the stablecoin market, with USDC ranking as the second-largest dollar-pegged cryptocurrency by market capitalisation. Analysts at US Tiger Securities pointed to the firm’s expanding partnerships with traditional financial institutions and its role in facilitating cross-border payments as key drivers of future revenue growth. The note did not set a specific price target but highlighted the company’s improving cost structure and potential for margin expansion.
The endorsement arrives at a time when UK investors are increasingly exposed to digital asset markets through pension funds and exchange-traded products. While the FTSE 100 was trading broadly flat on Tuesday at 8,214 points, down 0.2%, the broader technology and fintech sectors have seen heightened volatility amid shifting interest rate expectations. The benchmark index’s subdued performance contrasted with a modest uptick in the FTSE 250, which added 0.3% to 20,876.
For UK pension holders and retail investors, the stability of stablecoin issuers such as Circle carries implications beyond direct equity holdings. Many multi-asset funds now allocate small percentages to digital infrastructure companies, and a positive analyst outlook can influence fund manager sentiment. However, analysts caution that regulatory risks remain, particularly around the classification of stablecoins under the UK’s forthcoming Financial Services and Markets Bill, which is expected to clarify the legal status of such assets.
“Circle’s ability to navigate the evolving compliance landscape will be critical,” said a market strategist at a London-based brokerage, speaking on condition of anonymity. “If the UK aligns with the EU’s MiCA framework, that could provide a clearer runway for stablecoin adoption, benefiting firms like Circle that already operate under stringent US oversight.”
The reiteration of the Buy rating comes as Circle prepares to report its next quarterly earnings, with analysts forecasting a rise in transaction fee revenue driven by increased USDC circulation. For now, the stock remains a speculative play for growth-oriented investors, though the US Tiger note may provide some near-term support for the share price.