Crypto veteran Arthur Hayes isn’t holding back — according to him, Circle, the company behind the stablecoin USDC, may be facing a serious threat. The reason? A group of Wall Street’s biggest banks is reportedly considering a joint stablecoin initiative. And it’s all unfolding just as the GENIUS Act — key U.S. stablecoin legislation — moves through the Senate.

“Goodbye, Circle. Thanks for playing,” Hayes wrote with a touch of irony, suggesting that USDC’s dominance may soon come to an end.

🔹 Wall Street Giants Eye a Stablecoin of Their Own

According to The Wall Street Journal, banking heavyweights like JPMorgan Chase, Wells Fargo, Bank of America, and Citigroup are exploring the idea of launching a jointly-backed U.S. dollar stablecoin. Their plans appear to be accelerating now that the GENIUS Act is gaining traction in Congress.

Meanwhile, Circle is facing some pressure — the USDC peg has recently slipped slightly to $0.9987 — and major banks are sensing a golden opportunity in the fast-growing stablecoin market.

🔹 Circle in Sale Talks? Ripple and Coinbase in the Mix

Interestingly, Circle may already be seeking a way out. Behind the scenes, it is reportedly in talks with Ripple and Coinbase about a potential acquisition. What’s most valuable to them? Circle’s user base, its deep integration into DeFi applications, and the vast on-chain liquidity behind USDC.

Hayes and other analysts agree: the true value of USDC lies not just in its 1:1 peg to the dollar, but in its central role in decentralized finance.

🔹 Why Now? For Banks, It’s a Now-or-Never Moment

Wall Street sees digital currencies as both a threat and an opportunity. If banks don’t adapt, they risk losing ground in payments and deposits — two areas already being disrupted by big tech and crypto players. Meanwhile, French bank Société Générale is preparing to launch its own U.S. dollar-backed stablecoin on Ethereum.

The GENIUS Act could be a turning point. If passed, it would give both banks and licensed non-bank entities the green light to issue stablecoins — while restricting public companies outside the financial sector.

🔹 A New Era of Payments?

A stablecoin backed by major banks could revolutionize fast, low-cost cross-border payments, allowing traditional institutions to reclaim control over digital financial flows — territory that crypto firms have dominated in recent years.

The only question now: Can Circle survive the storm, or are we truly about to hear a final “Bye bye, Circle”?



#Circle , #USDC , #stablecoin , #ArthurHayes , #defi

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