JPMorgan says Hyperliquid’s rise threatens Circle’s USDC economics
Hyperliquid’s deal with Circle and Coinbase creates a “prisoner’s dilemma” that puts pressure on earnings from the dollar-pegged stablecoin.
Make preferred on
Share this article
Summary
- JPMorgan said a new arrangement with Hyperliquid is a near-term revenue headwind for Circle and Coinbase, with a greater long-term threat to Circle’s USDC economics.
- The bank argued the deal exposes a “prisoner’s dilemma,” encouraging Circle and Coinbase to compete for USDC distribution at the expense of each other’s economics.
- The Wall Street firm lowered earnings estimates for both firms, citing the Hyperliquid changes alongside weaker crypto trading volumes and asset prices.
