Mizuho says Circle bank approval doesn't solve USDC growth, stablecoin competition risks

FinanceMizuho says Circle bank approval doesn't solve USDC growth, stablecoin competition risksJapanese investment bank Mizuho reiterated its neutral rating on Circle, saying OCC approval for a national trust bank doesn't address slowing USDC growth or rising competition.By Will Canny, AI Boost|Edited by Stephen Alpher Jul 13, 2026, 4:34 p.m. 2 min readMake preferred on ShareShare this articleCopy linkX iconX (Twitter)LinkedInFacebookEmailMake preferred on SummaryShowMizuho said Circle's final OCC approval for a national trust bank is a positive step but doesn't address the company's core challenges. The bank pointed to USDC's declining market capitalization since March as a key concern. The report also warned that Open USD, a new consortium-backed stablecoin, could accelerate competition and pressure Circle's business.Circle Internet Group's (CRCL) final approval from the Office of the Comptroller of the Currency to establish First National Digital Currency Bank is a positive milestone, but investors may be overestimating its significance, according to Japanese investment bank Mizuho."While a positive development, we believe the market reaction is likely overly optimistic, as this does not resolve fundamental issues that have been hurting the stock of recent," analysts led by Dan Dolev said in the Friday report.Shares of the stablecoin issuer closed 5% higher on Friday following the news. The stock on Monday has given back most of those gains, trading 4.7% lower at $63.03 at publication time. Mizuho reiterated its neutral rating, arguing that the regulatory approval does not resolve the fundamental issues weighing on the stock.Those challenges include a decline in USDC's market capitalization since March 2026, which the bank said raises questions about the stablecoin's growth trajectory.Circle's USDC stablecoin has faced headwinds in recent months, with its circulating supply falling by roughly $7 billion from its March peak to about $74 billion in July as redem…

Mizuho says Circle bank approval doesn't solve USDC growth, stablecoin competition risks

Coins in this story

Related stories

Strategy pauses its Bitcoin buying spree to hoard a massive $3 billion cash cushion

Bitcoin panic-selling may be ending as sellers' profit margins disappear

TeraWulf CEO: 'Not All Megawatts Are Created Equally' in AI Race