Fast Facts
- Coinbase is now the official USDC treasury deployer on Hyperliquid, aiming to boost USDC’s role in on-chain markets.
- USDH will slowly phase out, with Coinbase maintaining its backing and allowing conversions to USDC during the transition.
- Hyperliquid is strengthening partnerships, with Circle handling cross-chain services and Coinbase supporting USDC growth on the platform.
- The platform is evolving towards USDC as the main quote asset, with future upgrades expected to fully integrate USDC for trading.
Coinbase Becomes Official USDC Treasury Deployer on Hyperliquid
Expanding USDC on Hyperliquid
Coinbase announced a new move to support USDC on Hyperliquid. The company became the official treasury deployer of USDC under the platform’s Aligned Quote Asset (AQA) framework. The goal is to strengthen USDC’s role as the main stablecoin in on-chain markets. Coinbase believes that focusing liquidity around USDC will make trading more efficient. As a result, money can move more easily across different trading platforms with fewer conversions. Users can still buy and sell USDC through Coinbase’s fiat on- and off-ramps. They will also access USDC via Coinbase’s global network.
The AQA framework was originally started by Native Markets. It aimed to build a stablecoin platform for Hyperliquid users. Now, Coinbase will take on the role of AQA deployer. Native Markets has agreed to allow Coinbase to acquire the USDH brand assets. For now, USDH markets will stay open. However, Coinbase plans to gradually phase out USDH. The company assured users that USDH remains fully backed. Users can convert USDH to USDC without fees or redeem it for cash during this transition. Native Markets will continue managing conversions and redemptions.
Next Steps in the Ecosystem
Hyperliquid shared that Circle will handle Cross-Chain Transfer Protocol (CCTP) services for cross-chain transactions. Both Circle and Coinbase will support this step by staking HYPE tokens to activate AQAv2. The announcement also revealed that Coinbase, as a treasury deployer, will share most of the reserve yield revenue with the protocol.
Furthermore, a network upgrade is planned. It will make USDC the main quote asset in outcome markets under HIP-4. Hyperliquid has quickly grown since its launch in November 2024. The platform is now recognized for its influence in perpetual futures trading on chain. Recently, 21Shares launched the first ETF focused on Hyperliquid’s HYPE token. Overall, these developments highlight how Coinbase and Native Markets are supporting USDC’s expanding role in the crypto trading landscape.
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