Shares of Circle Internet Corp. (CRCL) surged 5.20% in pre-market trading on Monday, as investors reacted to positive analyst coverage and regulatory developments in the stablecoin market. The stablecoin leader is poised to benefit from improving regulatory conditions and growing demand for digital assets.

Monness Crespi Hardt initiated coverage on Circle with a Buy rating and a target price of $150, signaling confidence in the company's growth prospects. This comes ahead of Circle's Q3 2025 financial results, set to be released on November 12. Market consensus expects revenue of $710 million and earnings per share of $0.17 for the quarter.

Adding to the positive sentiment, the Bank of England announced new regulatory proposals for stablecoins, potentially paving the way for wider adoption of digital currencies. Under the proposed rules, systemically important stablecoin issuers may allocate up to 60% of their backing assets into short-term government bonds, a move that could enhance the stability and legitimacy of stablecoins like Circle's USDC.

Circle's USDC stablecoin has shown steady growth, with its circulating supply reaching $65.2 billion as of August 10, 2025. The company has also expanded its partnerships with major exchanges like Binance and OKX, and launched new products such as Circle Gateway and Arc, a Layer-1 blockchain for financial applications. These developments, coupled with the improving regulatory landscape, are likely driving investor optimism and contributing to the stock's pre-market rally.