JPMorgan Chase: Circle faces "hard" competition from Tether, Hyperliquid and Fintech

According to Huobi HTX, JPMorgan analysts said that as Tether, Hyperliquid and several Fintech companies prepare to launch new stablecoins, the issuer of USDC stablecoins is facing "hard" competition. However, they warned that unless the cryptocurrency market expands significantly, the stablecoin market may eventually turn into a "zero-sum game" for US issuers. "In short, as we get closer to the implementation of new U.S. stablecoin legislation, new entrants are emerging in the U.S. stablecoin market, ready to seize market share, gain liquidity advantages, and challenge Circle's dominance," analysts such as JPMorgan managing director Nikolaos Panigirtzoglou wrote in a report on Wednesday. "It is worth noting that analysts believe that the supply of stablecoins is closely related to the overall market capitalization of cryptocurrencies, which means that if the cryptocurrency sector does not expand significantly, issuers are likely to trade at the cost of market share rather than expanding. "Zerosum game" refers to the situation where one party's income is offset by the losses of the other party, and there is neither net income nor net loss for the entire group.