JPMorgan Flags USDC Pressure Amid Hyperliquid Rise
Hyperliquid controls 8% of USDC supply JPMorgan lowers Circle forecasts JCB expands USDC merchant reach Hyperliquid's bridge holds several billion dollars
Summary
- Hyperliquid controls 8% of USDC supply
- JPMorgan lowers Circle forecasts
- JCB expands USDC merchant reach
Hyperliquid's bridge holds several billion dollars of USDC as of Q1 2026. That puts the venue among the top ten USDC destinations by balance. JPMorgan cut its earnings forecasts for Circle because stablecoin profits face pressure.
Hyperliquid now controls roughly 8% of total USDC supply. This concentration shows how fast reserves move toward onchain venues.
Context
Stablecoin adoption accelerated through institutions and payments in early 2026. Banks and protocols integrated USDC for settlements and cross-border transfers. Hyperliquid's growth matches this pattern of reserves shifting to onchain spots.
JPMorgan analysts pointed to the Hyperliquid USDC position as a main driver of margin pressure on Circle and Coinbase. Higher adoption could offset some lost reserve income. Still the bank trimmed its forecasts. The report noted Hyperliquid holds around $6 billion of USDC.
Details
Hyperliquid's bridge mechanics let users lock USDC for trading and liquidity on the layer. As of Q1 2026 this single venue already ranked among the largest holders. The concentration raises questions about how Circle distributes reserves.
Japan's JCB signed an MOU with Circle on July 14, 2026. The deal explores USDC payments across 40 million merchant locations. It targets cross-border use cases and pushes USDC adoption past crypto-native platforms. Multiple reports confirmed the agreement centers on stablecoin settlement for the card network.
"JPMorgan estimated that Hyperliquid holds around $6 billion of USDC."
, The Street (https://www.thestreet.com/crypto/markets/jpmorgan-cuts-earnings-forecasts-for-circle-and-coinbase)
JPMorgan linked the Hyperliquid position straight to lower earnings projections for Circle. The bank flagged competitive threats from concentrated onchain holdings. USDC adoption keeps growing. Yet revenue pressure on the issuer now worries analysts most.
Outlook
Market participants will watch whether Hyperliquid's USDC balance stabilizes or grows in coming quarters. JCB's rollout timeline and any new bank partnerships will also shape Circle's reserve dynamics. Readers should monitor stablecoin concentration risks. Hyperliquid activity and Circle revenue pressure continue to shift.
