Overview
- Circle won final OCC approval to form a federally chartered national trust bank on Friday, a credential that lets it offer fiduciary custody and sit under federal supervision.
- Investors reacted briefly to the charter with a roughly 5% stock pop on Friday that evaporated over the following sessions as traders questioned its economic impact.
- USDC’s circulating supply has fallen to about $73–74 billion since March, shrinking the pool of reserves that generate interest income for Circle.
- New commercial models threaten Circle’s margins: Open USD proposes a yield pass-through that sends most reserve earnings to partners and Hyperliquid’s terms can capture up to about 90% of cost-adjusted reserve yield on its platform.
- Analysts have cut forecasts because of these pressures—Mizuho downgraded Circle and slashed its price target—while Circle pursues Asia pilots with JCB and Nomura and faces a key revenue‑sharing renegotiation with Coinbase in August.