Stablecoin News – On July 8, 2025, Mizuho Securities initiated coverage of Circle, the issuer of USDC, with an “underperform” rating, projecting limited growth for the $61.75 billion stablecoin. The analysis, shared at a Hong Kong fintech summit, cited rising competition and commoditization risks under the U.S.’s GENIUS Act, which mandates banking charters for stablecoin issuers. Mizuho’s bearish outlook contrasts with Circle’s recent milestones, including its public market transition and compliance with the EU’s MiCA regulation.
USDC’s 29-fold trading volume surge in Europe, driven by MiCA, has bolstered its institutional appeal, per Finery Markets. However, Mizuho argues that USDT’s dominance ($156 billion market cap) and emerging stablecoins like Ripple’s RLUSD limit USDC’s upside. The GENIUS Act’s reserve requirements, while enhancing trust, increase operational costs, potentially eroding margins. As noted USDC’s 83.85% dominance on the Sei network, but its lag behind USDT on platforms like BitPay underscores competitive pressures.
Circle’s launch of Circle Gateway, a service for on-chain finance, aims to counter these challenges, but Mizuho sees limited differentiation in a crowded market. The Atlantic Council’s July 8 report highlighted stablecoin complexity for consumers, which could hinder USDC’s retail adoption. While Circle’s regulatory compliance gives it an edge in Europe, Mizuho’s skepticism reflects broader concerns about stablecoin scalability. Circle’s stock performance will hinge on overcoming these hurdles and expanding use cases beyond trading.
