đ¨ Circleâs USDC At Risk Per Arthur Hayes As Big Banks Explore Joint Stablecoin Venture
Major Wall Street banks are reportedly exploring a collaborative stablecoin initiative as the GENIUS Act advances toward passage in the U.S. Senate.
Crypto veteran Arthur Hayes sees this as a significant challenge to existing market leaders like Circle (USDC) and Tether (USDT). Reflecting on the development, Hayes remarked, âBye bye Circle. Thanks for playing.â
The latest WSJ report notes that top Wall Street banking giants like Wells Fargo, Bank of America, JPMorgan Chase, and Citigroup, as evaluating a joint collaboration for a stablecoin project.
As the GENIUS Act proceeds to the US Senate vote, commercial banks are already preparing for the next big opportunity in the stablecoin market.
These developments have sent jitters, especially to Circleâs USDC, which saw its dollar-peg fumble a bit, while slipping to $0.9987 earlier today.
ETH Store President Nater Geraci pointed out how banks switched from cursing stablecoin by calling crypto a scam, to now working on them.
Crypto veterans like Arthur Hayes believe that the big banks could threaten USDCâs existence with the stablecoin project.
Interestingly, this development comes just at a time when Circle is reportedly in discussions with Ripple and Coinbase for a potential sale.
Market analysts believe that big fish are focusing on this acquisition Circleâs user base, on-chain application integrations, and extensive liquidity.
The true value of USDC lies entirely in its on-chain presence in the decentralized finance (DeFi) sector.
Interestingly, the Circle Payments Mainnet went live earlier this week, after launching last month, as a competitor to the Ripple Payments network.
