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Mizuho keeps neutral on Circle after OCC approves national trust bank

Mizuho keeps neutral on Circle after OCC approves national trust bank

Circle won OCC approval for Circle National Trust under federal oversight, but Mizuho said the move does not offset weaker USDC circulation and rising competition from compliant stablecoins.

USDC

Fact Check
Two independent sources confirm that Mizuho kept a Neutral rating ($85 target) on Circle after the OCC trust bank approval. The Yahoo Finance/StockTwits article confirms Mizuho cited USDC market cap decline and commoditization risk, while TechTimes documents the intensifying competition from newer compliant stablecoins like Open USD. These match the claim's key elements: neutral stance, OCC approval, USDC circulation concerns, and stablecoin competition. The original CoinDesk link (the primary claim source) returned only a share-stub but its headline matches. No conflicting evidence found.
    Reference: 12
Summary

Mizuho maintained its neutral rating on Circle after the U.S. Office of the Comptroller of the Currency approved the company to establish Circle National Trust, a federally regulated trust bank. The bank said the approval is positive and gives Circle direct federal oversight, but does not change its core concerns about USDC's momentum and competitive pressure. Mizuho said USDC's circulating supply has fallen by about $7 billion since its March peak to roughly $7.4 billion, the largest monthly contraction since 2022, while competition is intensifying as more than 140 companies, including Visa, Stripe and Coinbase, back Open USD under the GENIUS Act. Circle shares rose 5% on Friday before falling 4.7% to $63.03 on Monday, giving back most of the earlier gain.

Terms & Concepts
  • OCC: U.S. bank regulator that oversees national banks and certain federal charters.
  • stablecoin: A digital token designed to maintain a fixed value, often by being pegged to a currency such as the U.S. dollar.
  • GENIUS Act: A U.S. legislative framework referenced in the report as shaping compliant stablecoin competition.