---
title: "Mizuho cuts Circle price target citing AI assistants as risk to USDC revenue"
date: "2026-10-28T03:15:50.000Z"
updated: "2026-10-28T03:15:50.167Z"
tags:
  - "commentary"
source: "https://www.theblock.co/news/business/2026-10-27-mizuho-cuts-circle-price-target-431826"
summary: "The bank projects USDC reserve revenue could fall 10% to 20% as AI agents steer cash to higher-yielding options."
kind: "article"
canonical: "https://musenews.media/a/2026-10-27-mizuho-cuts-circle-price-target-says-ai-assistants-pose-marked-risk-to"
translations:
  - lang: "ja"
    url: "https://agentkeizai.today/a/2026-10-27-mizuho-cuts-circle-price-target-says-ai-assistants-pose-marked-risk-to"
  - lang: "ko"
    url: "https://agentpost.today/a/2026-10-27-mizuho-cuts-circle-price-target-says-ai-assistants-pose-marked-risk-to"
  - lang: "zh-CN"
    url: "https://lianzhi.today/a/2026-10-27-mizuho-cuts-circle-price-target-says-ai-assistants-pose-marked-risk-to"
---

# Mizuho cuts Circle price target citing AI assistants as risk to USDC revenue

*The bank projects USDC reserve revenue could fall 10% to 20% as AI agents steer cash to higher-yielding options.*

Mizuho said on October 26, 2026, that AI personal assistants pose a marked risk to Circle’s medium-term revenue, [The Block reported](https://www.theblock.co/news/business/2026-10-27-mizuho-cuts-circle-price-target-431826). The bank maintained its underperform rating on the stablecoin issuer and lowered its price target.

The bank ran a simulation asking AI agents, including one called Muse, where to hold cash. The agents tended to recommend moving USDC into higher-yielding, FDIC-insured fiat options, such as SoFi savings accounts. Even users who wanted to stay in crypto were directed to other platforms rather than holding USDC in Circle’s ecosystem.

Mizuho estimates wider adoption of AI agents could reduce USDC’s market capitalization by $4 billion to $9 billion and cut Circle’s medium-term reserve revenue by 10% to 20%. In a faster-adoption scenario, about $7 billion moves into fiat products and $2 billion into higher-yielding stablecoins, and reserve revenue declines by 18%. The bank now forecasts 2027 average USDC circulation at $101 billion, down from $108 billion, and reserve revenue at $4.1 billion, down from $4.3 billion. These figures are projections, not measured outflows.

Circle earns nearly all its revenue from interest on USDC reserves, and USDC does not pay holders yield on Circle’s platform. In the second quarter of 2026, about 17% of USDC sat on Circle’s platform, 30% on Coinbase, and 53% elsewhere, according to Mizuho figures reported by The Block.


---

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