Circle, Coinbase Face Margin Pressure in Stablecoin Competition, JP Morgan Says

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According to JP Morgan Chase, on July 15, Circle and Coinbase face profitability pressure amid intensifying stablecoin revenue competition, particularly following their recent contracts with HyperLiquid. JP Morgan assessed that both companies are confronted with a 'Prisoner's Dilemma' scenario. Coinbase currently holds reserves of USDC (the world's second-largest stablecoin), with revenue from reserve management becoming increasingly competitive.
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