Mizuho Details Rising Redemptions and New Stablecoin Rival Pressuring Circle | PYMNTS. com
ByPYMNTS|July 13, 2026|Stablecoin issuerCirclefaces several challenges despite its receipt of final approval from theOffice of the Comptroller of the Currency(OCC) to establish a bank, analysts from Japanese. . .
ByPYMNTS|July 13, 2026|Stablecoin issuerCirclefaces several challenges despite its receipt of final approval from theOffice of the Comptroller of the Currency(OCC) to establish a bank, analysts from Japanese investment bankMizuhowrote in a Friday (July 10) note, CoinDeskreportedMonday (July 13). Reiterating Mizuho’s neutral rating on the company, the analysts led byDan Dolevwrote that Circle has seen a decline in its market capitalization since March, has seen redemptions of its stablecoin outpace new issuance since March, and faces competition from the newly launchedOpen USDstablecoin, according to the report. Speaking of Circle’s receipt of approval from the OCC, the Mizuho analysts wrote, per the report: “While a positive development, we believe the market reaction is likely overly optimistic, as this does not resolve fundamental issues that have been hurting the stock of recent. ”Shares of Circle closed 5% higher on Friday after news of the OCC approval but was trading 4. 7% lower Monday at the time of the CoinDesk report. Circle did not immediately reply to PYMNTS’ request for comment. PYMNTS reported Friday that Circle received the OCC approval to establish anational trust bankthat will operate under the name Circle National Trust and will offer fiduciary digital asset custody services for Circle and its affiliates. In the future, the bank may also offer its digital asset custody service to institutional customers directly, focusing on banks, regulated derivatives organizations and other financial institutions, and manage the USDC Reserve for theUSDCstablecoin. Circle Co-Founder, Chairman and CEOJeremy Allairesaid in a Friday press release that the OCC approval “unlocks a new phase of adoption, where leading financial institutions can build on public blockchains with clarity and confidence. ”PYMNTS reported in May that the cryptocurrency sector’sblockchain-native firmsand builders are increasingly tasked with sustaining premium valuations while simultaneously absorbing the costs of expansion, compliance and platform development. During Circle’s first-quarter earnings call, the company framed itself as not a payments company, but as an economic operating system being built for the future. The firm emphasized the convergence of artificial intelligence systems and blockchain-based economic coordination.