JPMorgan Chase: Circle faces'intense 'competition from Tether, Hyperliquid and Fintech

Circle, the issuer of the USDC stablecoin, faces "fierce" competition as Tether, Hyperliquid and several fintech companies prepare to launch new stablecoins, according to analysts at JPMorgan. However, they warn that unless the cryptocurrency market expands significantly, the stablecoin market could eventually become a "zero-sum game" for US issuers.
Analysts such as Nikolaos Panigirtzoglou, managing director of JPMorgan Chase, wrote in a report on Wednesday: "In summary, as we move closer to the implementation of new U.S. stablecoin legislation, the U.S. stablecoin market is emerging with new entrants poised to grab market share, gain a liquidity advantage, and challenge Circle's dominance." Notably, analysts believe that the supply of stablecoins is closely tied to the overall market capitalization of cryptocurrencies, meaning that without significant expansion in the cryptocurrency space, issuers are likely to trade at the expense of market share rather than gain market share. " Zero-sum "refers to a situation in which one party's gains are offset by the other party's losses, resulting in neither net gains nor net losses for the group as a whole.