Against the backdrop of ongoing Middle East tensions and a rebound in cryptocurrency prices, shares of publicly traded companies linked to stablecoins and digital assets have broadly strengthened. Among them, stablecoin issuer Circle Internet Corp. (CRCL.US) has emerged as a notable standout. Several institutions believe that as the use cases for stablecoins continue to expand, the company's stock has further upside potential.

U.S. investment bank Clear Street, in a recent research report, upgraded Circle's stock rating from "Hold" to "Buy" and raised its price target from $92 to $136. The institution noted that since early February, adoption of the US dollar-pegged stablecoin, USDC, has seen a noticeable increase, indicating growing usage by financial institutions and individual users for payments and cross-border transactions.

Driven by this optimism, Circle's stock price rose 9% on Monday to $125.83, reaching its highest level since last October. Year-to-date, the company's shares have accumulated a gain of approximately 46%. Data shows that the circulating supply of USDC surpassed $78 billion in December last year, subsequently falling back to around $70 billion by the end of January, but has recently climbed to a new all-time high of approximately $79 billion.

Analysts point out that disruptions to financial systems and transaction channels resulting from Middle East conflicts may have partially fueled the rising demand for stablecoins. As USDC is widely used for remittances and cross-border payments, its transactional utility has become more pronounced when traditional financial channels are impeded.

Clear Street analyst Owen Lau stated that despite recent market volatility, USDC's market capitalization has continued to grow, even as global equities and crypto assets experienced fluctuations. This suggests that the demand is driven more by genuine transactional use rather than speculative funds.

Beyond payment applications, the use of stablecoins in the financial sector is also broadening. For instance, an increasing number of institutions are beginning to tokenize funds—digitizing assets and trading them on blockchain networks. While these platforms may not exclusively use USDC for settlement, its strong compliance features and broad compatibility are making it a primary settlement currency.

Furthermore, the growth of prediction markets could further boost demand for USDC. Prediction trading platform Polymarket is planning to expand its operations in the U.S. market, and such platforms predominantly use USDC for transaction settlements. Data indicates that Polymarket alone facilitated approximately $22 billion in transactions last year.

Another emerging trend garnering market attention is Agentic AI. Industry experts suggest that in the future, AI agents may autonomously perform tasks such as booking flights, signing contracts, and even making payments. These operations would require 24/7 digital wallets and instant settlement systems. Circle is developing the Arc blockchain protocol, aiming to provide the underlying infrastructure for AI agent payments.

Analysts note that the growth of the stablecoin business implies that Circle's business model is not entirely dependent on Bitcoin price fluctuations. Compared to traditional crypto assets, the growth rationale for payment-focused stablecoins stems more from upgrades in financial infrastructure and the demand for digital payments.

Simultaneously, the regulatory environment for the crypto industry could also influence capital inflows. The market is closely watching the progress of the U.S. Digital Asset Market Clarity Act (CLARITY Act), which addresses issues such as whether stablecoin deposits can generate yield. With former President Trump urging compromise, Clear Street anticipates that relevant legislation could pass by late summer this year, providing a clearer regulatory framework for institutional capital to enter the digital asset market.

Amid the rebound in digital asset prices, several cryptocurrency-related stocks have also risen. The world's largest corporate Bitcoin holder, MicroStrategy (MSTR.US), recently disclosed that between March 9 and this past Sunday, it purchased an additional 22,337 Bitcoins for approximately $1.57 billion. Concurrently, shares of crypto exchange Coinbase (COIN.US) and internet brokerage Robinhood (HOOD.US) also advanced.

Data shows that Bitcoin, the world's largest cryptocurrency, has rebounded amid recent geopolitical tensions, rising about 3.8% in the past 24 hours to approximately $74,000. This represents a cumulative increase of roughly 10% since the U.S. first launched strikes against Iran on February 28.