JPMorgan Warns USDC Deal With Hyperliquid Could Erode Coinbase Profits
COIN sits 15% above its 52-week low of $139.18.
Summary
JPMorgan analysts warn that Coinbase's USDC partnership with Hyperliquid creates a prisoner's dilemma, potentially squeezing revenue. Under the deal, Coinbase routes 90% of stablecoin yield back to Hyperliquid, a sharp shift from the prior 50/50 split with Circle. With USDC supply down to $73B from $80B in March, yield pressure is mounting. The report adds a new layer of risk ahead of Coinbase's Q2 earnings on July 30, where any impact on stablecoin revenue will be scrutinized.
At the time of this announcement, COIN was trading at $160.12 on NASDAQ in the Crypto Assets sector, with a market capitalization of approximately $42.2B. The 52-week trading range was $139.18 to $444.65. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Coinpedia.