Crypto13 July, 20262 min read
Mizuho Says OCC Approval For Circle’s First National Digital Currency Bank Doesn’t Resolve Stock Concerns
This article is an automated aggregation of coverage from news outlets. Our editorials offer in-depth analysis curated by the NewsCord team.
OCC final approval granted for Circle's national digital currency bank. Positive step, but doesn't address USDC growth or rising competition.
OCC approval, USDC headwinds
Japanese investment bank Mizuho reiterated a neutral rating on Circle, saying the Office of the Comptroller of the Currency approval for Circle to establish First National Digital Currency Bank does not resolve fundamental issues weighing on the stock. In Friday’s report, analysts led by Dan Dolev said the market reaction was likely overly optimistic because the regulatory step “does not resolve the fundamental issues weighing on the stock.”
Mizuho pointed to a decline in USDC’s market capitalization since March 2026 as a key concern, and said USDC’s circulating supply fell by roughly $7 billion from its March peak to about $74 billion in July as redemptions outpaced new issuance. CoinDesk also reported that Circle’s shares closed up 5% on Friday following the announcement, before giving back most of those gains on Monday when the stock traded down 4.7% to $63.03 at the time of publication.
Competition from Open USD
Mizuho warned that competitive pressure could intensify as Open USD, a newly launched dollar-backed stablecoin, accelerates rivalry with Circle’s USDC. CoinDesk said Open USD was developed by a consortium of more than 140 financial and technology companies, including Mastercard, Stripe and Coinbase, and noted that the stablecoin was compliant with the GENIUS Act.
In the same report, Mizuho argued that consortium-backed stablecoins raise the risk that the sector becomes increasingly commoditized, making it harder for Circle to sustain its competitive position despite obtaining a national trust bank charter. The Bitget write-up echoed the core theme, stating that OCC approval cannot solve USDC’s slowing growth and competitive risks, while describing Mizuho’s stance as neutral.
What Mizuho says next
Mizuho said it remains on the sidelines, even as it acknowledged the OCC approval as a positive development for Circle. CoinDesk reported that the stablecoin market posted its largest monthly contraction in years in June, signaling an on-chain outflow of liquidity as crypto markets remained near their 2026 lows.
The report also tied the supply contraction to concerns that slower growth in supply could weigh on Circle’s transaction revenue and reserves outlook, even though on-chain usage remains strong. Separately, CoinDesk noted that CEX trading volumes rose for the first time in five months in June, with spot climbing 15.3% to $1.11 trillion and RWA perpetual volumes surging to a record $311 billion.