JPMorgan just said Circle and Coinbase are stuck in a prisoner's dilemma with each other.


The bank flagged risks in Circle and Coinbase's new agreement with Hyperliquid, the fast-growing derivatives platform that now holds about $6 billion in USDC, roughly 8% of its total supply.
Under the deal, Coinbase gives up 90% of related stablecoin reserve revenue to Hyperliquid just to keep $USDC dominant there. JPMorgan's read: both companies are incentivized to sacrifice profit solely to defend their market share against each other.
Worth watching, since USDC's growth increasingly depends on deals like this rather than organic demand alone.
CRCLG-0.42%
COING-2.51%
HYPE-3.73%
USDC-0.01%
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