Circle Internet Group signed a memorandum of understanding with JCB Co., Ltd., Japan's largest payment network. The partnership aims to integrate the USDC stablecoin for cross-border payments across JCB’s 40 million global merchants. A planned proof of concept will evaluate USDC for internal fund transfers to improve efficiency and reduce costs.
Despite the expansion, Circle’s stock fell after Mizuho downgraded the company to Underperform. Analysts cut the price target to $40 from $85, overshadowing recent praise from Circle’s president regarding a historic federal trust bank approval.
Market uncertainty also stems from the proposed CLARITY Act. US banking groups warn the stablecoin legislation could create loopholes that encourage a shift of deposits from traditional banks to digital assets.