Circle will face competition with new launches from Tether, Hyperliquid and other Fintech: Jpmorgan

According to analysts of JPMorgan, The plans of Tether, Hyperliquid And other recognized participants in the sector could put things up to Circle, although it advances in their plans to launch their own network Blockchain.

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• Tether plan to launch USAT, A totally tight stablocoin with the new law Genius Act.
• Hyperliquid prepare USDH and reduces its dependence on USDC
• Robinhood and Revolut explore their own stablcoins while Circle drives your Blockchain Arc.

For analysts of JPMorgan, The stablecoin issuing company USDC, Circle, He faces increasingly intense competition in the stable currency market.

In a new report published by the entity, reviewed by The Blockthe team of analysts led by Nikolaos Panigirtzoglou, indicate that competition for Circle It comes from several sectors, pointing promptly to Tether With your plans to USAT, already Hyperliquid With the Token USDH

JPMorgan: Competition for Circle
Tether plans Usat with reserves in Anchorage
Hyperliquid Lanza Usdh; Robinhood and Revolution evaluate
Circle Impulsa Arc to keep USDC pic.twitter.com/1xfoufecvz

– Diario ฿ Itcoin (@diariobitcoin) SEPTEMBER 19, 2025

Tether seeks to institutionalize USAT

On the side of Tether, intends to guard the reserves of USAT with Digital anchoragean entity with a banking license in the United States. According to JPMorgan, This strategy seeks to strengthen institutional confidence, reduce the dependence on external banks, reduce operating costs and avoid risks similar to those I experienced Circle during the collapse of Silicon Valley Bank in 2023.

By directly managing reserves of USAT, Tether It also aims to retain more performance and improve your profit margins. This movement suggests that the company seeks to position itself as a more regulated and attractive competitor for institutional clients in the United States.

Hyperliquid prepare USDH To compete with USDC

In parallel, Hyperliquid He prepares to launch his own native stable, USDH According to analysts, its futures platform already represents about 7.5% of the total use of USDC, indicating that the market share of Circle It could decrease once the currency is available.

This step marks an independence strategy against Circle and highlights the diversification of the Stablecoins market. Analysts see in USDH a direct threat to the domain that USDC He maintained in certain segments of the crypto market.

Fintechs and new chains to ensure market share

In addition to Tether and Hyperliquid, Fintechs like Robinhood and Revolution They would be developing their own stablcoins. This movement reflects a growing trend: large traditional financial platforms want to integrate into the stable digital asset business to attract their millions of users.

For its part, Circle is building Arc, a Blockchain dedicated exclusively to Stablecoins. This network seeks to keep USDC in the center of the crypto ecosystem optimizing speed, security and interoperability. This effort responds to the challenge of new competitors and aims to consolidate its position before the full application of the new regulation in the United States.

A market in possible zero sum game

Analysts underline that Stablecoins’ total supply has closely followed the capitalization of the crypto market in general. Without a significant growth in that universe, the issuers will probably exchange market quotas instead of expanding the cake.

The Stablecoins market is currently around USD $ 278,000 million, but its relative participation in the total capitalization of the crypto market remains stable below an average of 8% since 2020. This suggests that the growth of the stablecoins depends largely on the global expansion of the crypto market.

In short, the entry of new actors and the implementation of the Genius Act In the United States they could radically transform competition for the liquidity and trust of users. If the market does not expand, Circle, Tether, Hyperliquid and the Fintechs will face an environment where the profits of one will be the losses of another.

Written article with the help of an AI content editor, edited by Angel Di Matteo / Diariobitcoin

Original image of Unspash, edited with Canva

WARNING: Diariobitcoin offers informative and educational content on various topics, including cryptocurrencies, AI, technology and regulations. We do not provide financial advice. Cryptactive investments are high risk and may not be adequate for all. Investigate, consult an expert and verify the applicable legislation before investing. I could lose all its capital.

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