Revenue from reserves is distributed to channel partners, Circle’s profit margin is under pressure, and traditional rating agencies are reshaping their valuation logic for the RWA sector

CRCL-0.20%
RWA0.34%
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CoinNetwork
Coin Bureau news: Mizuho downgraded Circle’s rating to Underperform and cut its target price to $50. The reason is that Open USD’s revenue transfer model will shift more reserve income to distributors, thereby putting pressure on Circle’s profit margins.
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