# Circle Faces Pressure as Coinbase Backs Rival Stablecoin, Mizuho Warns Coinbase's support for competing stablecoin OUSD gives it leverage over Circle in contract talks. - **Source:** [DailyCoin](https://brifing.si/source/3e9b0f85-cb2f-40ee-ba61-db9410cf0937) - **Published:** 2026-07-15 - **Topic:** [Finance](https://brifing.si/c/finance) - **Original article:** - **On Brifing:** https://brifing.si/s/415ee04b-2a3e-4f97-af34-d580c33620e8 ## Coinbase's Dual Role As both Circle's primary USDC distributor and a backer of rival OUSD, Coinbase holds significant leverage ahead of August's revenue-sharing agreement renewal. Mizuho warns this dual position could squeeze Circle's profit margins as it may need to offer better terms to retain Coinbase. ## Mizuho's Warning Japanese investment bank Mizuho downgraded Circle to 'Underperform' and slashed its price target from $85 to $50. The bank highlighted Coinbase's conflicting roles could force Circle to increase revenue sharing, negatively impacting profitability. ## USDC Supply Decline USDC's circulating supply has dropped by $7 billion since March to about $74 billion, marking its largest monthly contraction since 2022. Increased competition from consortium-backed stablecoins like OUSD is challenging USDC's market position. ## OUSD's Different Model Backed by over 140 companies including BlackRock and Visa, OUSD flips the traditional stablecoin model by passing nearly all reserve income to distribution partners. This contrasts with Circle's USDC where the issuer keeps about 38% of revenue. ## Traditional Finance Enters Stablecoins Major financial institutions entering the stablecoin market signals a new era. Participation from firms like BlackRock and Mastercard in OUSD demonstrates how traditional finance is shaping the next phase of stablecoin development. ## Pivotal Moment for the Industry The upcoming Circle-Coinbase agreement renewal in August could set precedents for the entire stablecoin industry. Changes to revenue-sharing models may redefine future profitability dynamics, with Mizuho's warnings highlighting growing pains in the maturing market. ## Sources covering this story - https://dailycoin.com/circle-squeezed-mizuho-downgrades-crcl-stock/ — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._