Mizuho: Circle's Approval by OCC Underscores Fundamental Strength, USDC Growth Amid Ongoing Competitive Pressure

BlockBeats News, July 14th, Mizuho, a Japanese investment bank, stated that while Circle obtaining final approval from the Office of the Comptroller of the Currency (OCC) to establish the First National Digital Currency Bank is a positive development, it is not sufficient to address the core challenges the company currently faces.

Mizuho maintained a "neutral" rating on Circle, believing that the market's response to this good news may be overly optimistic. The institution pointed out that since March of this year, the circulating market capitalization of USDC has decreased by approximately $7 billion to around $74 billion, reflecting a slowdown in its growth momentum that could weigh on Circle's transaction revenue and reserve income.

Furthermore, Mizuho also noted that the stablecoin Open USD (OUSD), launched by a coalition of over 140 financial and technology companies including Mastercard, Stripe, and Coinbase, and compliant with the GENIUS Act, is intensifying market competition. As alliance-based stablecoins continue to emerge, the stablecoin industry may further homogenize, increasing the difficulty for Circle to maintain a competitive edge.