Morgan Stanley downgraded Circle to underweight and cut its price target 𝟲𝟰% from $106 to $38, citing slower USDC growth and competition from tokenized money market funds. Circle shares fell ~6% following the call. 𝗛𝘂𝗽𝘇𝘆 𝘁𝗮𝗸𝗲: This is a structural signal for USDC, the primary settlement asset across Hyperliquid, Aster, and Polymarket. Morgan Stanley is effectively saying tokenized MMFs — like BlackRock's BSTBL and BRSRV launched today — will eat into USDC's market position. Near-term the peg isn't at risk, but if USDC growth slows, liquidity depth on integrated trading platforms could thin over time. The competitive landscape is shifting: regulated tokenized funds are emerging as alternatives to stablecoins for institutional settlement, which could redirect capital flows away from USDC-denominated pairs. Track real-time signals & trade → https://hupzy.com/trending?utm_source=x&utm_medium=social&utm_campaign=agent_x_post&utm_content=1800(Hupzy (Spot On Chain))