Is CRCL Worth Investing? Copying the Strategies of xStocks

Circle Internet Group (CRCL), the company behind the USDC stablecoin, has been making waves since its explosive IPO in June 2025. With its stock soaring from $31 to highs of nearly $300, investors are buzzing about its potential. 

Meanwhile, tokenized stock platforms like Kraken’s xStocks are revolutionizing how people access traditional equities through blockchain. But can CRCL’s growth mirror the strategies behind xStocks’ tokenized stocks? Let’s dive into whether CRCL is a smart investment and how its trajectory aligns with the innovative approach of xStocks.

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What Is Circle (CRCL)?

The Stablecoin Powerhouse

Circle Internet Group is a fintech leader focused on digital currencies, specifically its U.S. dollar-pegged stablecoin, USDC. Founded in 2013 by Jeremy Allaire and Sean Neville, Circle enables businesses to use blockchain for payments, commerce, and financial applications.

USDC, the second-largest stablecoin with a market cap of around $60 billion, is at the core of Circle’s operations. The company’s recent IPO on June 5, 2025, raised $1.1 billion, with shares debuting at $31 and skyrocketing 168% on the first day, closing at $83.23.

CRCL’s Financial Snapshot

Circle’s revenue model primarily relies on interest earned from USDC reserves, which are invested in short-term U.S. Treasuries. In 2024, this generated $1.6 billion in interest income, though high distribution costs, particularly to partner Coinbase, ate into profits.

The company reported $557 million in operating revenue and a $64.79 million net income for Q1 2025, with cash reserves near $61.27 billion. Despite a premium valuation, trading at 175 times forward earnings, CRCL’s growth potential in the $260 billion stablecoin market keeps investors intrigued.

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Understanding xStocks Tokenized Stocks

What Are xStocks?

Kraken’s xStocks platform allows users to trade tokenized versions of U.S. stocks and ETFs, like Apple or Tesla, on blockchains like Solana. These digital tokens mirror the value of real-world assets, backed 1:1 by custodians like Backed Finance. 

Designed for non-U.S. investors, xStocks offer 24/7 trading, fractional ownership, and crypto integration, making equities more accessible globally.

Why xStocks Matter

xStocks democratize investing by removing barriers like traditional market hours and high entry costs. Key benefits include:

• 24/7 Trading: Trade anytime, unlike stock exchanges with set hours.

• Fractional Shares: Buy portions of expensive stocks with small amounts.

• Global Access: Non-U.S. investors can tap into U.S. markets.

• Fast Settlements: Blockchain ensures near-instant transactions.

• Crypto-Friendly: Use stablecoins like USDC for trades.

This innovative model aligns with Circle’s mission to bridge traditional finance and blockchain, making CRCL a potential candidate to emulate xStocks’ strategies.

CRCL’s Strategic Moves and xStocks Alignment

Circle’s Push for a National Trust Bank Charter

In July 2025, Circle applied for a national trust bank charter to create the First National Digital Currency Bank, N.A. This would allow Circle to manage its USDC reserves internally, cutting reliance on external custodians like BlackRock and Bank of New York Mellon. 

If approved, this move could streamline operations, boost efficiency, and align with upcoming stablecoin regulations like the GENIUS Act, passed in June 2025. The charter positions Circle as a regulated player, much like xStocks’ use of licensed custodians to ensure compliance.

Stablecoin Market Growth

The stablecoin market hit $260 billion in July 2025, with projections of $2 trillion by 2028 and $4 trillion globally in a decade. Circle’s USDC, with its growing adoption in platforms like Shopify, is well-placed to capture this expansion. 

Similarly, xStocks leverages stablecoins like USDC for seamless trading, creating a synergy where Circle’s stablecoin dominance could fuel platforms like xStocks, driving demand for both.

Institutional Backing

CRCL’s IPO drew heavy institutional interest, with ARK Invest buying 4.48 million shares worth $373.4 million and BlackRock eyeing a 10% stake. This mirrors xStocks’ appeal to crypto-native and institutional investors seeking exposure to traditional assets via blockchain. 

The shared reliance on blockchain infrastructure and institutional trust strengthens the case for CRCL adopting xStocks-like strategies.

Read Also: Analyzing Circle: A Guide on Buying them Through Bitrue Alpha

Can CRCL Emulate xStocks’ Strategies?

Leveraging Blockchain for Accessibility

xStocks’ 24/7 trading and fractional ownership align with Circle’s vision of a borderless financial system. Circle’s Circle Payments Network (CPN) and USYC, a yield-bearing tokenized fund, could adopt xStocks’ model by offering tokenized financial products to global users, enhancing accessibility and liquidity.

Integrating with DeFi and Traditional Finance

xStocks bridge DeFi and traditional markets, allowing crypto users to invest in equities without leaving Web3. Circle could expand USDC’s integration into DeFi platforms and tokenized asset markets, positioning CRCL as a backbone for services like xStocks. This would diversify revenue beyond Treasury yields.

Targeting Global Markets

xStocks cater to non-U.S. investors, tapping into regions like Asia and Europe. Circle’s global USDC adoption and potential bank charter could enable it to offer regulated, blockchain-based financial services worldwide, mirroring xStocks’ borderless approach.

Analyst Outlook and Price Targets

Analysts are optimistic about CRCL, with a “Moderate Buy” consensus. Out of 12 analysts, six recommend “Strong Buy,” one “Moderate Buy,” four “Hold,” and one “Strong Sell.” The average price target is $193.12, a 3% upside from $188.77, with a high of $250 (32% upside).

Needham’s John Todaro and Bernstein’s $230–$247 targets highlight Circle’s stablecoin leadership and regulatory tailwinds. However, JPMorgan’s “Sell” rating cautions against overvaluation.

Read Also: Circle Stock Hits $200 Record After 34% Daily Gain, Surges on Stablecoin Bill Passage

Conclusion

CRCL is a promising investment due to its USDC leadership, institutional support, and bank charter pursuit. Its alignment with xStocks’ blockchain model could boost global reach. However, stock volatility, regulatory risks, and reliance on interest rates demand caution.

High-risk investors may find CRCL appealing if it adopts xStocks’ DeFi strategies. Conservative investors should await a dip near $100. With the stablecoin market set to soar, CRCL’s potential is strong, but timing and risk tolerance are key. Always research before investing.

FAQ

What drives CRCL’s revenue?

CRCL earns mainly from interest on USDC reserves, $1.6B in 2024 alone, mostly from short-term U.S. Treasuries.

Why is CRCL’s valuation considered risky?

It trades at 175x forward earnings with high volatility, making it vulnerable to market swings and overvaluation fears.

How does CRCL’s strategy align with xStocks?

Both use blockchain to boost global access, CRCL through USDC, xStocks via tokenized equities and 24/7 trading.

What’s Circle’s bank charter all about?

Circle’s applying for a U.S. trust bank charter to manage USDC reserves in-house, aiming to cut reliance on third parties.

Can CRCL survive falling interest rates?

That’s a major risk, 99% of CRCL’s revenue relies on Treasury yields. Lower rates could sharply dent profits.

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