Mizuho Warns AI Agents Pose Revenue Risk to Circle’s USDC

revenue risk to Circle — Analysts at Mizuho Securities warn that Circle’s revenue from its USDC stablecoin could face significant pressure as AI-driven financial agents direct users toward higher-yielding alternatives.

The firm cited a medium-term downside risk of 10% to 20% to Circle’s reserve revenue. This risk stems from the potential for AI agents to automatically steer USDC holders toward other fiat-based instruments that offer better returns, reducing the capital held in USDC’s underlying reserves.

Circle generates revenue primarily from the interest earned on the assets backing its stablecoin. The analysis suggests that the rise of autonomous AI financial tools could directly challenge this business model by prioritizing yield optimization for users.

The warning highlights a new competitive dimension for stablecoin issuers, where technological adoption, rather than just regulatory or market factors, could impact treasury management and profitability.