The final approval of Circle Internet Group (CRCL) by the Office of the Comptroller of the Currency to establish the First National Digital Currency Bank is a positive milestone, 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 this does not resolve the fundamental issues that have been hurting the stock recently,” analysts led by Dan Dolev said in Friday’s report.
Shares of the stablecoin issuer closed 5% higher on Friday following the news. On Monday, the stock gave back most of those gains, trading 4.7% lower at $63.03 at press time.
Mizuho reiterated its neutral rating, arguing that regulatory approval does not resolve the fundamental issues weighing on the stock.
Those challenges include a decline in USDC’s market capitalization from March 2026, which the bank says raises questions about the stablecoin’s growth trajectory.
