Circle Receives OCC Approval for Digital Bank; USDC Market Cap Falls $7B Since March Amid Competition

CRCL-4.73%
USDC0.04%
MA2.11%
COIN-1.04%
According to Mizuho on July 14, Circle received final approval from the U.S. Office of the Comptroller of the Currency (OCC) to establish First National Digital Currency Bank, marking a positive development. However, the Japanese investment bank maintains a neutral rating on Circle, suggesting market optimism around the approval may be overdone. Mizuho noted that USDC's circulating market cap has declined approximately $7 billion to around $74 billion since March, reflecting slowing growth momentum that could pressure Circle's transaction revenue and reserve yields. The bank also flagged intensifying competition from Open USD (OUSD), a stablecoin backed by over 140 financial and tech firms including Mastercard, Stripe, and Coinbase, as a growing challenge to Circle's competitive advantage.
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