JPMorgan: Profit Margin of Circle and Coinbase's Stablecoin Business Under Pressure, Lowered Earnings Outlook

BlockBeats News, July 15th, according to Bloomberg, JPMorgan Chase & Co. stated that the stablecoin businesses of Circle Internet Group and Coinbase Global are facing increasing profit pressure, and they believe that a new partnership with the crypto trading platform Hyperliquid highlights a "prisoner's dilemma" situation for the two companies.

On Tuesday, the bank lowered its profit expectations for these two leading crypto companies, stating that the new partnership arrangement has changed the revenue-sharing model, specifically how the income generated by Circle's USDC, the world's second-largest stablecoin, will be allocated among various distribution partners.