TechFlow news, July 15, according to CoinDesk reports, Japanese investment bank Mizuho downgraded stablecoin issuer Circle (CRCL) rating from "Neutral" to "Underperform", target price significantly lowered from $85 to $50, Circle's stock price subsequently fell 0.6% to $62.63.
Mizuho analysts pointed out that the OpenUSD stablecoin launched by the Open Standard consortium on June 30 poses a fundamental threat to Circle's business model. Unlike the model where USDC retains most reserve yield and then shares revenue with partners such as Coinbase and Binance, OpenUSD only charges a small operational fee and distributes the vast majority of reserve yield to issuers and distributors, which may force Circle's partners to demand higher revenue share ratios. The consortium has gathered over 140 partners, including Mastercard, Stripe, Coinbase, and BlackRock.
