Circle's Open USD Threat: Why Yield Pass-Through Could Pressure CRCL Margins

Mizuho downgraded Circle to a $50 target, citing "Open USD" as a yield pass-through threat to Circle's margins. Circle's USDC supply has slipped to around $73 billion. Open USD may pressure revenue by passing yields to users, potentially squeezing Circle's profitability. The analyst warns this dynamic could reshape stablecoin issuer economics if Open USD gains traction in the market.