Tokenized assets could represent a $10 billion business opportunity for Circle. Here's why.

After Clear Street upgraded Circle’s stock rating to “Buy,” its share price rose. Clear Street believes that tokenization is the main catalyst for the stock price increase. Analyst Owen Lau pointed out that the management scale (AUM) of tokenized assets has surged over 200%, reaching approximately $26 billion, which presents Circle with a potential $10 billion long-term growth opportunity. He also emphasized that due to banking turmoil in the Middle East, USDC is increasingly being used in the region, and USDC’s role as a settlement layer in prediction markets like Polymarket is also becoming more prominent, with annual growth rates in prediction markets exceeding 200%. Although the Clarity Act will be helpful, Lau stressed that Circle is currently operating under the regulation of the GENIUS Act, providing a regulatory foundation for its growth.