Morgan Stanley Slashes Circle Stock as USDC Balances Decline

Circle Internet Group's (CRCL) stock price dropped by 6.3% in Monday's premarket trading after Morgan Stanley downgraded its rating to Underweight from Equalweight.

The downgrade was due to declining USDC balances, which Morgan Stanley sees as a shift towards lower-margin transaction revenue instead of higher-margin stablecoin transactions.

In contrast, TD Cowen initiated coverage on CRCL with a Buy rating, citing the platform's potential for growth and expansion in the digital assets market.