Citi sets $243 Circle target on stablecoin payment infrastructure opportunity

Citi favors crypto infrastructure companies with lower exposure to token prices and has set a $243 price target for Circle, citing the growth potential of stablecoin payment networks.

Investors should look beyond companies tied directly to crypto prices and focus on infrastructure supporting tokenization, payments and high-performance computing, according to Citi. Stablecoins could become a default settlement method for cross-border payments and real-world asset tokenization.

In an Oct. 19 CoinDesk interview, Pete Christensen, Citi’s director of digital assets equity research, named Circle as his top pick and said the bank is focusing on companies supporting the convergence of traditional finance and digital assets.

Christensen said equity investors can obtain crypto price exposure through various instruments and therefore seek businesses offering more than pure crypto beta. He highlighted Bitcoin miners pivoting to hyperscale data centers and high-performance computing, real-world asset tokenization companies, and stablecoin and AI-agent payment infrastructure.

Real-world asset tokenization is likely to spread across equities and bonds, but the economics of the businesses serving the market remain uncertain. Christensen said Securitize has an impressive technology stack and strong positioning, but added that how much it can charge for tokenization remains a major question.

He also flagged potential short-term share supply at $12.50, $15 and $17.50, where certain sponsor shares become unlocked. Citi downgraded Securitize to neutral after concluding that its risk-reward profile had become more balanced and said it would monitor operating data and unit economics for a better entry point.

Christensen identified collateral mobility as a major opportunity for tokenization. Institutional investors often post excess collateral too early to avoid operational problems, he said, while tokenization could make collateral use more efficient and support additional trading.

For Strategy, he said the more important issue is restoring Bitcoin yield rather than MSCI’s plan to classify the company as non-operating, which would make it ineligible for global indexes. Strategy could post a negative Bitcoin yield in 2026 after building its cash reserve and selling Bitcoin at unfavorable prices, making the resumption of yield generation in 2027 a key question.

Citi’s macro team forecasts Bitcoin at $113,000 over the next 12 months. Christensen said Citi values Strategy using an expected Bitcoin yield of about 6% to 7% and a multiple of 1.2 to 1.25 times net asset value. The multiple could expand during a strong Bitcoin rally, but renewed capitulation could push the shares below their summer lows.

Citi set a $243 target for Circle. Christensen cited the company’s liquidity, compliant platform, Arc blockchain and agent-focused technology stack, saying Circle could become a preferred settlement rail for many clients.

Cross-border payments and real-world asset tokenization require a settlement asset, and Citi expects stablecoins to become a default option. Christensen also sees significant upside in agentic payments and expects Circle to remain among the leading payment networks over the long term.