Disagree with stablecoin disruption thesis for Visa and Mastercard, says Mizuho's Dan Dolev
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Associated Press
an hour ago
- Associated Press
Bankers Worry New Stablecoin Law Won't Prevent Big Retailers from Finding Loopholes
ARLINGTON, Va., Aug. 4, 2025 /PRNewswire/ -- Bank executives overwhelmingly worry that large corporations like Amazon and Walmart will bypass new prohibitions on interest-paying stablecoins under the recently enacted GENIUS Act, according to a survey released today by fintech IntraFi. Signed into law on July 18, the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act) sets regulatory standards for U.S. stablecoins, including preventing them from paying interest or offering financial incentives for adoption. Despite that measure, 96% of banking executives surveyed expressed concern that major retailers and tech companies will find loopholes to offer yield-bearing stablecoins, potentially increasing competition for bank deposits. 'Bankers recognize the intent behind the GENIUS Act, but there's skepticism about its effectiveness,' said Mark Jacobsen, Cofounder and CEO of IntraFi. 'Concerns are high that nonbank corporations will find a way to offer yield, creating potential competitive pressures for traditional banks.' The survey also found that despite recent moves by major banks like J.P. Morgan Chase, Goldman Sachs, and BNY Mellon to pursue stablecoins and/or deposit tokens, more than half (52%) of bank executives said their institutions had no immediate plans to offer similar products. The quarterly survey also explored increasing concerns around fraud, particularly challenges associated with fraudulent checks. Eighty-two percent of bank executives cited delays or lack of cooperation from the bank of first deposit as a significant hurdle in resolving fraud disputes. Additionally, 68% reported difficulty obtaining reimbursement from the bank of first deposit, while 60% indicated their banks often reimburse customers even when not legally required. Bankers widely supported clearer regulatory guidance on fraud liability. Eighty-two percent favored new regulations explicitly outlining banks' responsibilities for customer reimbursement, and over 70% supported enhanced collaboration and information sharing among banks to tackle fraud. Other Highlights: IntraFi's Q2 2025 Bank Executive Business Outlook Survey garnered responses from CEOs, presidents, CFOs, and COOs at 455 unique banks nationwide. Download the full report. About IntraFi IntraFi is a trusted partner chosen by over 3,000 financial institutions. Established more than 20 years ago, its network enables banks to build stronger customer relationships, fund additional loans, efficiently manage liquidity needs, and generate fee income. The network provides participants access to tens of billions of dollars in funding, the highest per-depositor and per-bank capacity, and the security to confidently place large-dollar deposits. View original content: SOURCE IntraFi
Yahoo
2 hours ago
- Yahoo
Mizuho Raises Price Target for Western Digital (WDC), Keeps Outperform Rating
Western Digital Corporation (NASDAQ:WDC) is one of the 12 Best Performing AI Stocks So Far in 2025. On July 31, Mizuho increased its price target for Western Digital Corporation (NASDAQ:WDC) from $75 to $87 while keeping an Outperform rating. This decision came after the company's strong results for the June quarter, with the company reporting $2.61 billion in revenue. Western Digital Corporation (NASDAQ:WDC) also provided guidance for the September quarter, forecasting revenue of $2.70 billion and EPS of $1.54, surpassing consensus estimates of $2.55 billion in revenue and $1.42 in EPS. A data center filled with racks of hard disk drives and solid state drives. Western Digital Corporation (NASDAQ:WDC) reported that its Nearline hard disk drive shipments reached 170 exabytes for the June quarter, a 17% increase compared to the previous quarter, with cloud customers making up 90% of revenues. According to estimates by Mizuho, average selling prices rose by 7% compared to the previous quarter and are expected to remain strong. Additionally, Western Digital Corporation (NASDAQ:WDC) reported strong purchase orders and long-term agreements with its five biggest cloud service provider customers through fiscal year 2026. Two of these five agreements extend into the first half of fiscal 2027. The company's margins were described as strong, with AI helping to shift the product mix towards higher-capacity drives. Western Digital Corporation (NASDAQ:WDC) is a global provider of data storage solutions. The company is committed to serving the world's hyperscalers, enterprises, and cloud providers to support the next generation of AI-driven data workloads. While we acknowledge the potential of WDC as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 12 Best Performing Stocks in the Last 6 Months and 12 Most Owned Stocks by Hedge Funds So Far in 2025. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
4 hours ago
- Yahoo
Dear Circle Stock Fans, Mark Your Calendars for August 12
Circle Internet Group (CRCL) has quickly found itself in the spotlight. Since its public debut, the stock has been powered by investor speculation and structural shifts in regulation and infrastructure. At the heart of this rally lies the GENIUS Act, a legislative initiative that created a framework for stablecoins. However, the new regulatory landscape introduces constraints. The GENIUS Act requires that stablecoin reserves consist only of cash, demand deposits, or short-term Treasury securities. This restricts Circle's flexibility in managing yield and limits its capacity to navigate risk through asset diversification. More News from Barchart Find Winning Momentum Trades With This Moving Average Stock Screener Tariffs, Earnings and Other Can't Miss Items this Week This Blue-Chip Dividend Stock Is Stuck in the Tariff Crosshairs. Can Cost Cuts Save the Day? Tired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now! At the same time, Circle shares a meaningful portion of its interest income with distribution partners, such as Coinbase Global (COIN). Management has already signaled that this share may grow, further pressuring margins. All eyes are now on Tuesday, Aug. 12, when Circle will release its fiscal 2025 second-quarter results. For investors, the date may determine whether Circle stock can seen a sustainable surge. About Circle Stock Based in New York, Circle operates as a global financial technology company that offers infrastructure for blockchain-based financial applications. It is best known for issuing USDC (USDCUST), a dollar-backed stablecoin, and EURC, its euro-denominated counterpart. The company's market capitalization stands at $37 billion, and its operations extend beyond issuing digital currencies. Circle offers a comprehensive range of services, including developer tools, integration services, and tokenized fund products. For the past month, shares of CRCL stock are down 13%. During the same period, the S&P 500 Index ($SPX) has posted a gain of 0.6%. Circle's valuation remains high. Circle trades at 169 times adjusted forward earnings and 19.8 times sales, placing it well above industry averages. These multiples reflect elevated expectations but also highlight how much optimism is already priced into the stock. A Closer Look at Circle's Q1 Earnings Circle delivered a strong financial performance in the first quarter of fiscal 2025, which ended March 31. Total revenue and reserve income from continuing operations reached $578.6 million, marking a 58.5% year-over-year (YOY) increase. Operating income from continuing operations rose nearly 78% over the same period, coming in at $92.9 million. The company also posted substantial gains in profitability metrics. Adjusted EBITDA increased 60.6% and reached $122.4 million. Net income rose 33% to $64.8 million. Unaudited pro forma earnings per common share came in at $0.29. Circle ended the quarter with $1.1 billion in cash and cash equivalents, providing the company with the liquidity to continue supporting strategic initiatives and operational needs. Looking ahead, the outlook turns challenging, though. Analysts expect the company's Q2 loss per share to widen 100% YOY to $1.29. For the full fiscal year, the loss is projected to widen by 100% to reach $0.58 per share. However, expectations shift in fiscal 2026, when EPS is forecast to rise 177% to $0.45. While the turnaround offers a future growth narrative, the near-term outlook remains pressured by external constraints. What Do Analysts Expect for Circle Stock? Analyst sentiment on CRCL stock remains split, and the current consensus 'Hold' rating reflects as much. Out of 14 covering analysts, five maintain a 'Strong Buy" rating, one issues a 'Moderate Buy,' four advise to 'Hold,' and four recommend a 'Strong Sell.' This range reflects both the promise and the pitfalls of CRCL's current trajectory. CRCL stock's average price target of $183.54 represents 9% potential upside from here. On the more bullish end, the Street-high target of $280 represents 66% potential upside from current levels. On the date of publication, Aanchal Sugandh did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
