Did JPMorgan Just Back Hyperliquid Over Circle For Future of Finance?

Tether is rolling out USAT, a US-compliant stablecoin built to meet the rules of the new GENIUS Act. Unlike USDT, where only about 80% of reserves meet compliance standards, USAT will keep assets with Anchorage Digital. JPMorgan analysts led by Nikolaos Panigirtzoglou said the launch, alongside Hyperliquid’s USDH and other fintech coins, will pressure Circle.

This shift could lift margins and avoid missteps like Circle’s exposure to Silicon Valley Bank in 2023.

JPMorgan noted that the fight for market share is zero-sum mainly unless the overall crypto market grows. So, who will win the stablecoin wars?

Can Hyperliquid and Fintech Giants Really Steal Market Share From Circle?

Hyperliquid, one of the most viral Web3 projects of 2025,  is moving to cut ties with Circle’s USDC dependency by rolling out its own USDH stablecoin. 99Bitcoins analysts noted Hyperliquid accounts for around 7.5% of total USDC usage, which could translate into an immediate hit to Circle’s market share.

We wondered how Circle was going to react to the $USDH saga and in answer, they released a blog post discussing:

1⃣ Buying $HYPE & continuing to buy more

2⃣ Being a validator

3⃣ Investing in developer tooling along w/CCTP v2

4⃣ Incentive programs for HIP-3/HyperEVM builders pic.twitter.com/roJvZUPvm7

— Castle Labs

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