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