JPMorgan cuts Circle and Coinbase earnings forecasts as the Hyperliquid deal weakens USDC revenue economics for both firms.

Hyperliquid's deal with Circle and Coinbase creates a "prisoner's dilemma" that puts pressure on earnings from the dollar-pegged stablecoin.

JPMorgan warns Hyperliquid's deal to capture 90% of USDC reserve yield could redirect $160 million annually from Circle and Coinbase to the DeFi platform.