TLDR
- Circle invests in HYPE tokens and launches native USDC on Hyperliquid’s HyperEVM network
- Move follows Native Markets winning Hyperliquid’s stablecoin competition to launch USDH
- Circle considers becoming a validator while integrating Cross-Chain Transfer Protocol v2
- USDC holds nearly $6 billion in reserves on Hyperliquid as the dominant stablecoin
- Hyperliquid processes $150 billion monthly as the largest onchain derivatives platform
Circle has made its first investment in Hyperliquid’s HYPE token while simultaneously launching native USDC support on the derivatives trading platform. The strategic move positions Circle as a direct stakeholder in one of crypto’s fastest-growing ecosystems.
The stablecoin issuer announced Tuesday it now holds HYPE tokens and is evaluating becoming a network validator. Circle’s native USDC integration began on Hyperliquid’s Ethereum-compatible HyperEVM layer, with plans to expand to HyperCore soon.
Circle CEO Jeremy Allaire confirmed the launch fulfills roadmap commitments made in July. USDC currently represents nearly $6 billion in reserves on Hyperliquid, making it the platform’s dominant dollar-backed stablecoin.
The timing follows Hyperliquid’s completion of a competitive stablecoin selection process. Native Markets, a startup co-founded by an early Hyperliquid contributor, won the right to issue the protocol’s native USDH stablecoin after beating bids from Paxos, Frax, Sky, Agora, Ethena, OpenEden, and BitGo.
Native Markets Wins USDH Competition
Hyperliquid validators chose Native Markets through a community vote to develop USDH. The decision caps a week-long competition among major stablecoin issuers seeking to capture value from Hyperliquid’s massive trading volumes.
USDH will launch through a staged rollout beginning with small-scale testing on HyperEVM. The protocol plans to open a USDH/USDC spot trading pair following the initial phase.
Hyperliquid confirmed existing stablecoins like USDC can continue operating as quote assets by meeting specific requirements. These include staking 200,000 HYPE tokens worth approximately $10 million and maintaining robust dollar peg mechanisms.
Circle’s investment ensures its continued presence despite not winning the native stablecoin contract. The company has developed comprehensive developer programs for both HIP-3 and HyperEVM builders.
Cross-Chain Protocol Integration
Circle integrated its upgraded Cross-Chain Transfer Protocol version 2 into Hyperliquid. The integration reduces friction for transferring USDC across more than a dozen supported networks.
The protocol support enables fintech companies, payment processors, and other services to integrate more easily with Hyperliquid’s infrastructure. Circle plans to launch dedicated incentive programs encouraging USDC adoption on the platform.
Hyperliquid validators are HYPE holders who stake tokens to secure the blockchain and validate transactions. The top 21 validators by stake amount form the active set responsible for block production and governance decisions.
Current leading validators include Galaxy Digital, Flowdex, and the Hyper Foundation. About 430 million HYPE tokens are staked across the network, with HYPE trading around $53.81.
Market Dominance and Trading Volume
Hyperliquid has emerged as the largest onchain derivatives platform by volume. The protocol processes approximately $150 billion in monthly transactions out of nearly $200 billion total across all decentralized platforms.
The platform reached $330 billion in cumulative trading volume by July, nearly one year after launching its layer-1 network. Hyperliquid specializes in perpetual futures and spot trading through its decentralized exchange.
Circle went public in June through a $1.1 billion NYSE listing. The company’s stock closed over 200% higher on its first trading day. USDC operates across two dozen networks with over $73 billion in total circulation.
