Circle shares fall as Mizuho warns of AI agent threat to USDC revenue

Circle Internet Group shares fell 7% following a report from Mizuho, which warned that the rise of AI personal assistants poses a significant risk to the company’s medium-term revenue. Mizuho lowered its price target for the USDC issuer from $45 to $43, maintaining an ‘Underperform’ rating.

The bank’s analysts suggest that AI agents may steer users away from USDC in favor of higher-yielding alternatives. Simulations involving AI agents, such as one named Muse, indicated that these tools tend to recommend FDIC-insured savings accounts or other platforms even when users express a preference for digital assets.

Mizuho estimates that widespread AI adoption could reduce USDC’s market capitalization by $4 billion to $9 billion. This shift could result in a 10% to 20% decline in Circle’s reserve revenue, which accounted for 95.2% of the firm’s total revenue in the second quarter of 2026.