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

Mizuho's recent downgrade of Circle to "underperform" and the reduction of its price target to $50 highlight concerns over the potential impact of Open USD's yield pass-through model. This new model could shift more reserve income from Circle to distributors, squeezing its profit margins. The shift underscores the competitive threats emerging in the digital currency infrastructure space, signaling a possible shake-up in how these services are delivered and monetized. This move by Mizuho reflects broader market anxieties about Circle's financial resilience against new competitive pressures.