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Mizuho:AI Agents could pose Circle the highest downside risk to reserve income 20%BlockBeats reports that October 27, Mizuho Securities (Mizuho) lowered USDC stablecoin issuer Circle Internet Group（CRCL’s price target from 45 USD to 43 USD, while maintaining its “Underperform” rating. The firm warned that AI personal assistant engines could pose a “significant risk” to Circle’s medium-term revenue.
The report said that, as AI agents are widely adopted,USDC’s market capitalization could face 4000000000 to 9000000000 USD downside pressure, while Circle’s reserve income could face medium-term downside risk of 10%to 20%. Mizuho’s simulation showed that AI agents, including Muse, tended to recommend that users move funds from USDC to higher-yielding fiat alternatives protected by FDIC insurance, such as savings accounts offered by SoFi. Even if users insisted on remaining in crypto,AI agents “seemed more inclined toward other platforms” rather than holding Circle directly within the USDC ecosystem.
Mizuho also presented a faster AI adoption scenario: approximately 7000000000 USD could flow into fiat products, while another 2000000000 USD could flow into higher-yielding stablecoins. This would cause USDC’s market capitalization to shrink by as much as 9000000000 USD, and reduce Circle’s reserve income by 18%.
The firm also lowered its financial forecasts for 2027: it cut the expected average circulating supply of USDC from 108000000000 USD to 101000000000 USD, reduced expected reserve income from 4300000000 USD to 4100000000 USD(a decline of approximately 5%), and lowered adjusted EBITDA expectations from 635000000 USD to 603000000 USD.
Original link https://m.theblockbeats.info/flash/373906