Circle slides after Morgan Stanley downgrade, cut in price target

CoinDesk·

Circle slides after Morgan Stanley downgrade, cut in price target

60-second summary

Morgan Stanley downgrades Circle, citing potential earnings pressure from tokenized money market funds and slower USDC growth. The bank cuts Circle's price target, which could impact investor confidence and influence its market share. This move may also affect Circle's ability to compete with other stablecoin issuers, potentially impacting the broader digital asset market's stability and adoption.

The bank said tokenized money market funds, Open USD and slower USDC growth could weigh on the stablecoin issuer's earnings.