Circle Launches Native USDC on Hyperliquid, Buys $4.6M HYPE
Circle has launched native USDC on Hyperliquid’s HyperEVM, replacing bridged tokens and integrating its dollar-backed stablecoin into the platform’s spot and perpetual derivatives markets. The upgrade uses Circle’s Cross-Chain Transfer Protocol v2 to enhance cross-chain liquidity.
On-chain data shows Circle bought $4.6 million of HYPE tokens and is evaluating a validator role in Hyperliquid’s 21-member stake pool. This deeper integration precedes Hyperliquid’s upcoming USDH stablecoin launch. If Hyperliquid converts its $5.9 billion USDC collateral to USDH, Circle could lose up to $200 million in annual reserve income. The move bolsters USDC liquidity, market reach and governance influence.
Bullish
The launch of native USDC and integration into Hyperliquid’s derivatives platform via CCTP v2 enhances cross-chain liquidity and expands USDC’s trading utility. This development is likely to boost USDC demand and usage in both spot and perpetual markets, supporting its market stability and peg. In the short term, traders may allocate more USDC for hedging and margin, driving higher on-chain volume. Over the long term, Circle’s validator role and token investment deepen protocol governance ties, further cementing USDC’s position in DeFi derivatives networks. These factors collectively present a bullish outlook for USDC adoption, even though the peg remains stable.