Mizuho Securities has initiated coverage on Circle (CRCL), the company behind the USDC stablecoin, with an "Underperform" rating and a price target of $85. This marks the first time Mizuho has issued such a rating for Circle. The firm highlights several risk factors influencing their negative outlook. Potential US interest rate cuts are a concern, as they could impact Circle's revenue model. Stagnant growth in USDC issuance is another worry, signaling potential challenges in market adoption. Furthermore, Mizuho points to high USDC circulation costs as a factor weighing on the company's performance. Mizuho acknowledges Circle's efforts to enhance transparency through strengthened regulatory compliance. However, they believe that upcoming US stablecoin regulations, such as the GENIUS Act, could actually intensify competition within the stablecoin market, negatively impacting Circle's market share and profitability. Despite these concerns, Circle's stock closed at $204.81 on [Date], a slight decrease of 1.24% from the previous trading day. The "Underperform" rating suggests investors should exercise caution regarding Circle's future performance. ```

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