Circle, the issuer of the stablecoin USDC, saw a rise in pre-market trading on Friday, with its stock price exceeding $236 before the trading bell. This places it above the target price of $235 set by Wall Street research firm Seaport Global, which began coverage of the company today with a buy rating.

But once the bell rang, the company's stock, which trades on the New York Stock Exchange under the symbol CRCL, stabilized and is currently trading around $228, up 14% from its previous close.

Seaport announced that it began coverage of Circle on Friday, ahead of the market opening. Analyst Jeff Cantwell described the stablecoin issuer as "a first-class disruptor in the cryptocurrency world," and said he believes the $260 billion stablecoin market will grow to $2 trillion.

In the analysis shared by Cantwell with De,,crypt, he wrote that USDC was always intended to be disruptive. He said: "Early on, Circle's founders envisioned developing 'HTTP for money' to make money smoother in order to help lift global economic prosperity."

Cantwell also predicted that investors will see Circle's annual revenue growth of up to 30%, with gross margins around 40%, as it continues to expand.

Although interest rates are currently favorable for Circle, he said the company's strength could also be its biggest risk. He wrote: "Nearly all of Circle's revenue still comes from interest earned on reserve assets - 99% in both 2023 and 2024. This represents both a strength and a risk if interest rates decline."

Both Circle and the cryptocurrency exchange Coinbase have attracted a lot of investor interest since the Senate voted in favor of the major stablecoin legislation, the GENIUS Act, which emerged on Tuesday. This is because both companies have an agreement that sees them sharing the interest earned on the $61.2 billion cash reserves backing the company's stablecoin tokens.

The GENIUS Act, if signed into law, will represent the first comprehensive federal framework for stablecoins pegged to the US dollar.

Coinbase, which trades on Nasdaq under the symbol COIN, started Friday up 3% over its Wednesday close. (Note: Markets were closed in the US on Thursday, June 19, in celebration of Juneteenth.)

However, the trading platform Robinhood - which is less exclusively tied to cryptocurrency assets and has no ties to a stablecoin - saw a rocky start on Friday morning. The company, which trades on Nasdaq under the symbol HOOD, is priced at $76.76, down 2% from its price on Wednesday afternoon.

HOOD's stock reached a 52-week high of $77.83 on Wednesday, exceeding the $61 target price set by Deutsche Bank and the $69 target set by Cantor Fitzgerald earlier this year.

But it still has a long way to go before it approaches the target price of $90 set by Michael Cyprys of Summit Redstone Partners.

Just last week, Robin, hood reported that the total assets on the platform grew to $225 billion in May, an increase of 10% from April and an astonishing 89% compared to the same period last year.

Edited by James Rubin