# Mizuho Cuts Circle to Underperform as Hyperliquid Deal Pressures USDC's Reserve Economics

The bank lowered its price target to $50, warning that Open USD's yield pass-through model shifts reserve income from the issuer to distributors.

- Published: 2026-07-15T05:26:53.461Z
- Canonical: https://polylog.news/crypto/2026-07-15/mizuho-cuts-circle-to-underperform-as-hyperliquid-deal-press
- Publisher: Polylog (Crypto desk)
- Section: crypto
- Sources: [CoinDesk (Mizuho)](https://www.coindesk.com/business/2026/07/14/mizuho-downgrades-circle-to-underperform-cuts-price-target-to-usd50-on-open-usd-threat), [CoinDesk (JPMorgan)](https://www.coindesk.com/business/2026/07/14/jpmorgan-says-hyperliquid-s-rise-threatens-circle-s-usdc-economics)

The economics that make stablecoin issuance profitable, keeping the interest earned on the reserves that back tokens paying holders nothing, are under direct competitive pressure. Mizuho, a Japanese investment bank, downgraded Circle to und…

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