JPMorgan has shifted to a more optimistic stance on Circle, the leading stablecoin issuer behind USDC, reflecting growing institutional confidence in the role of digital dollars within mainstream finance.

The Wall Street bank double upgraded Circle to “overweight” from “underweight”, signaling expectations of outperformance relative to the broader market.

The move, led by JPMorgan analyst Kenneth Worthington, also comes with a new price target of $100, up from the previous $94.

This implies a potential 16% upside from current levels, as the bank sees improving fundamentals and favorable long-term trends supporting Circle’s business.

Circle’s stock, trading under the ticker CRCL on the New York Stock Exchange, has seen significant volatility since its public debut in June.

Shares have soared 178% from their initial public offering (IPO) price of $31 but have also fallen 67% from their June highs, creating what Worthington described as a “buying opportunity.”

“With Circle’s share price under pressure in recent weeks in advance of a substantial lockup expiration, Circle’s stock price has approached and fallen below our previous Dec. 2026 price target ($94),” Worthington wrote in his research note.

He added that the stock now offers “enough upside… to outperform our broader coverage universe,” pointing to a combination of lower valuation and improving fundamentals as justification for the upgrade.

The upgrade follows Circle’s solid third-quarter earnings report, which showed both earnings and revenue surpassing Wall Street expectations.

Despite the strong performance, shares dropped 12% on Wednesday after the company issued higher operating expense guidance for the full year.

Still, Worthington described the quarterly results as evidence that stablecoins are steadily integrating into traditional financial systems.

“The quarterly results indicate to us that stablecoins are continuing to make their way into mainstream financial services, with USDC a leading stablecoin and Circle a leading partner,” he wrote.

JPMorgan’s optimism suggests the bank views Circle’s temporary margin pressures as a byproduct of strategic investment rather than structural weakness.

Worthington emphasized that Circle is bringing more USDC on-platform, a move that strengthens its ecosystem and supports long-term scalability.

The bullish outlook from one of Wall Street’s largest institutions reflects a broader shift in sentiment toward stablecoins, cryptocurrencies designed to maintain a fixed value, typically pegged to the US dollar.

As regulatory clarity improves and adoption spreads across payment networks, analysts see companies like Circle positioned to benefit from the growing use of digital dollars in commerce and financial infrastructure.

Worthington noted that Circle’s ability to “boost growth while investing in its network buildout” underscores its strategic importance within this evolving ecosystem.

With the latest upgrade, JPMorgan joins a growing group of financial institutions recognizing the potential of stablecoins as a bridge between traditional banking and digital finance.

While near-term volatility remains, the bank’s call suggests that the long-term story for Circle, and for stablecoins more broadly, continues to gain momentum.

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