Analysts at JPMorgan have downgraded their profit outlook for Circle and Coinbase, citing a new agreement between the two companies and Hyperliquid that may adversely affect the USDC stablecoin.
Details of the Agreement
In May, Circle and Coinbase revised their partnership with Hyperliquid, a major decentralized trading platform. Under the new terms, Coinbase treats USDC on Hyperliquid's perpetual DEX as an asset on its platform, generating revenue from the associated reserves and allocating 90% of this income to Hyperliquid. This marks a shift from previous profit-sharing arrangements that were more balanced between Coinbase and Circle.
Hyperliquid currently manages $6 billion in USDC, representing around 8% of the token's total circulating supply. The platform has emerged as a leader in decentralized perpetual futures trading, with its trading volume surpassing $150 billion in July, which helped boost its market share against Binance to 11.5%.
