Financial giant Mizuho Securities has delivered a notable upgrade to its investment outlook on Circle, the issuer of the highly utilized USDC stablecoin. The positive revision is directly attributed to the expanding utility of USDC, specifically highlighting its pivotal role in settling high-value contracts on the decentralized prediction market platform, Polymarket.
Mizuho analysts pointed to Polymarket’s decision to standardize on USDC for the settlement of major prediction contracts as a critical validation point. This move solidifies USDC’s status as a necessary infrastructure layer for decentralized applications (dApps) that require both scalability and regulatory stability. Unlike simple peer-to-peer transfers, using USDC for sophisticated settlement mechanisms, particularly those involving large user bases and substantial financial stakes like those found on Polymarket, demonstrates profound trust in Circle’s reserve management and compliance structure.
The analysts project that this increased institutional and platform adoption will lead to a significant acceleration in the growth of Circle’s managed reserves and transaction volumes. The report suggests that the real-world utility demonstrated by Polymarket translates into quicker monetization potential for Circle, whose primary revenue streams are derived from yields generated by their stablecoin reserves.
Based on these factors, Mizuho has reportedly revised its price target upward for Circle shares, expressing increased conviction that USDC adoption across specialized decentralized finance sectors will propel the company’s valuation ahead of its previous estimates.
Source: Mizuho upgrades Circle shares outlook citing Polymarket’s use of USDC for settlement
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