According to Chase Morgan, the recent USDC collaboration between Coinbase, Circle and Hyperliquid could weaken Coinbase and Circe ' s income on stable currency. In the Bank ' s view, this arrangement changed the structure of the original division and made it easier for the two companies to have a conflict of interest in facilitating the distribution of USDC.

Distribution of proceeds to Hyperliquid

According to reports, this cooperation landed two months ago. Coinbase became the official USDC liquidity manager for Hyperliquid, while Circle was responsible for cross-chain infrastructure and foundry to reduce third-party risk.

In exchange, Coinbase returns 90% of USDC proceeds to Hyperliquid. The latter spends this money on regular repurchases of HYPE tokens to support their value. According to Chase Morgan, this has changed significantly compared to the previous practice of Coinbase and Circle, which had almost evenly distributed stable currency revenues.

Morgan Chase raised the issue of the prisoners' plight.

In its report of July 2026, Morgan Chase stated that this collaboration revealed structural problems in the Circle-Coinbase partnership. According to the Bank ' s analysts, both sides wanted to scale up USDC distribution to increase revenue, but under the new modalities of cooperation, competitive relationships could be further widened.

The report mentions that Hyperliquid is currently an important platform in the go-to-centre exchange. The platform processed transactions on a scale of over $150 billion in July and broke the barter ratio with Binance by 11.89 per cent. According to the reported data, Hyperliquid currently holds approximately $6 billion in USDC, about 8 per cent of its circulation.

  • Trade processing in July in excess of $150 billion
  • Held approximately $6 billion
  • About 8% of USDC traffic

USDC revenues are under external pressure.

In addition to the changes in the cooperative structure, Chase Morgan mentioned that the weakness of the overall encryption market was also reducing the return on stable currency. The USDC supply currently stands at around $73 billion, below the March level of about $80 billion.

At the same time, more regulated and stable currency enters the market, weakening USDC’s past lead position. It was also mentioned that, while it was considered a positive development by Seo-Seo that Circe had been allowed to establish a bank, investors might be overpricing this factor.

The market will then focus on the quarterly performance to be disclosed by the two companies to determine whether Morgan Chase ' s concerns will be reflected in the financial data. In accordance with the schedule of coverage, Coinbase expects to release performance for the second quarter on 30 July, while Circle expects to release the related report on 11 August.