JPMorgan lowered its performance expectations for Circle and Coinbase, citing that its new protocol with Hyperliquid weakens USDC’s profit potential. Under the new agreement, Coinbase will pay Hyperliquid 90% of the yield generated by USDC reserve funds on Hyperliquid, rather than splitting it with Circle as it did previously. JPMorgan said this creates a “prisoner’s dilemma,” pushing both sides to compete with each other when promoting USDC distribution. Data shows that Hyperliquid currently holds about $6B worth of USDC, accounting for 8% of its total circulating supply. (CoinDesk)

JPM2.26%
CRCL-0.75%
COIN1.72%
HYPE2.66%
USDC-0.02%
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