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CoinDesk·3 min read·hard

Mizuho downgrades Circle to underperform, cuts price target to $50 on Open USD threat

W
Will Canny
Mizuho downgrades Circle to underperform, cuts price target to $50 on Open USD threat
AI Summary

Mizuho has downgraded Circle's stock to underperform, citing the competitive threat posed by the new OpenUSD stablecoin consortium. Analysts believe OpenUSD's revenue-sharing model could undermine Circle's business model and weaken its negotiating power with partners like Coinbase.

Japanese investment bank Mizuho downgraded Circle (CRCL) to underperform from neutral and slashed its price target to $50 from $85, arguing that OpenUSD's business model threatens the stablecoin issuer's long-term economics.

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