Wall Street's Caution on Circle: Does USDC Face a Slow Erosion or Sustained Stability?

What happened

Major financial institutions have expressed caution on Circle's outlook, citing pressures on USDC's economics. While the stablecoin's peg remains stable at $0.9998, the analysis suggests potential long-term shifts in mar…

What we think

The most likely outcome is that USDC maintains its peg but faces a gradual erosion of market share over the mid-term, with a 50% probability.

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Wall Street's Caution on Circle: Does USDC Face a Slow Erosion or Sustained Stability?

We explain what happened and what could follow. We do not forecast prices.