JPMorgan (NYSE:JPM) on Tuesday cut earnings forecasts for Circle Internet (NYSE:CRCL) and Coinbase (NASDAQ:COIN) after their new agreement with Hyperliquid weakened USDC economics for both companies.
What Did JPMorgan Actually Say?
Analysts led by Kenneth Worthington said the Hyperliquid deal created a structural problem for the Circle-Coinbase partnership.
Under the new arrangement, Coinbase classifies USDC held on Hyperliquid as “on-platform,” collects the reserve income, and pays 90% of it directly to Hyperliquid.
Previously, Coinbase split nearly all of that revenue evenly with Circle.
