The final approval of Circle Internet Group (CRCL) by the Office of the Comptroller of the Currency to create the first national digital currency bank is a positive step, but investors may be overestimating its importance, according to Japanese investment bank Mizuho.
“While this is a positive development, we believe the market reaction is likely overly optimistic, as it does not address the fundamental issues that have hurt the stock of late,” analysts led by Dan Dolev said in Friday’s report.
Shares of the stablecoin issuer closed up 5% on Friday following the news. The stock on Monday gave back most of those gains, trading down 4.7% at $63.03 at press time.
Mizuho reiterated its neutral rating, arguing that regulatory approval does not address the fundamental issues weighing on the stock.
These challenges include a decline in USDC’s market capitalization since March 2026, which the bank says raises questions about the stablecoin’s growth trajectory.
