First National Digital Currency Bank

JPMorgan lowered earnings forecasts for Circle and Coinbase after changes tied to Hyperliquid’s USDC arrangement, pointing to near-term revenue pressure and a longer-term challenge for stablecoin economics. The bank said the structure could push the two partners into competing for USDC distribution at the expense of each other’s returns.

Mizuho reiterated a neutral view on Circle after the company secured final OCC approval to establish First National Digital Currency Bank. The firm said the milestone is constructive, but it does not resolve concerns around USDC supply trends, competitive pressure and the broader commoditization of stablecoins.