Mizuho downgrades Circle to underperform, cuts price target to $50 on Open USD threat
CoinDesk·
60-second summary
Mizuho downgrades Circle to underperform, citing Open USD's yield pass-through model that could pressure Circle's margins by shifting more reserve income to distributors. The bank cuts Circle's price target to $50, implying a potential decline in value. This move reflects concerns over Circle's ability to maintain profitability amidst increased competition in the stablecoin market.
The Japanese investment bank said Open USD's yield pass-through model could pressure Circle's margins by shifting more reserve income to distributors.