Will Hyperliquid USDH End Circle and USDC? CIRCL Stock Plummets

Hyperliquid's USDH isn't just knocking—it's kicking down the door. Circle's fortress looks shaky as CIRCL stock tanks.

The DeFi Disruptor Arrives

USDH bypasses traditional banking rails entirely. No intermediaries. No permission slips. Just pure algorithmic efficiency cutting out the middlemen who've been skimming value for decades.

Market Reaction Speaks Volumes

Investors aren't waiting to see how this plays out. They're dumping Circle stock like it's 2008—because in crypto, yesterday's innovation is today's legacy baggage. The numbers don't lie: when decentralized alternatives emerge, centralized players bleed.

Circle's existential moment isn't about technology—it's about whether traditional finance deserves a seat at crypto's table anymore. Maybe they should've focused less on regulatory cozy-ups and more on building something people actually want to use.

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Due to its ease of redemption back to USD, USDC is the go-to stablecoin, powering Hyperliquid’s community-driven liquidity provision, enabling the platform to process billions in monthly trading volume. Circle issues USDC in compliance with U.S. regulations, clarified further by the GENIUS Act, which outlines requirements for stablecoin issuers tracking the USD on major public chains.

Hyperliquid Wants Its Stablecoin, Circle Has Other Plans

Since Circle, Tether, and other top stablecoin issuers generate billions in profits, and some of these tokens fuel the Hyperliquid ecosystem, the perpetual exchange aims to redirect profits to HYPE holders. To achieve this, Hyperliquid plans to have a third-party issue for USDH. As of September 10, several bidders are competing, with Hyperliquid validators set to choose the winner by September 14.

Interested parties include Paxos, the team behind BUSD; Ethena, which recently partnered with Binance for its USDe stablecoin; Sky, a major player in decentralized money markets; Agora; Native Markets; and others. On Polymarket, punters think Native Markets will issue USDH.

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Circle, which dominates USDC trading on Hyperliquid, is not interested in issuing USDH but instead plans to continue with USDC. USDC powers 95% of Hyperliquid’s trading pairs, enabling smooth trading of assets like PUMP and HYPE. In a post on X, Circle’s CEO, Jeremy Allaire, stated they will engage the “HYPE ecosystem in a big way” and “intend to be a major player and contributor to the ecosystem.”

Don’t Believe the Hype

We are coming to the HYPE ecosystem in a big way. We intend to be a major player and contributor to the ecosystem.

Happy to see others purchase new USD tickers and compete

Hyper fast native USDC with DEEP and nearly instant cross chain…

— Jeremy Allaire – jda.eth / jdallaire.sol (@jerallaire) September 7, 2025

Agora, Paxos, Ethena, Sky, and FRAX are all vying to issue USDH, offering to share reserve yields with the community to accelerate HYPE buybacks or fund community development.

Circle, however, aims to integrate USDC natively into Hyperliquid’s layer-1, eliminating bridging costs from Arbitrum, while refusing to share profits. Any attempt to divert revenue to Hyperliquid will be consequential, directly harming CIRCL shareholders.

Will Circle Fall? CIRCL Stock Already Selling Off

As such, how Circle will navigate the stablecoin scene in Hyperliquid remains unclear, especially as validators prepare to vote for a USDH issuer willing to channel a big chunk of revenue back to HYPE holders.

PriceHYPE824h7d30d1yAll time

If traders immediately shift to USDH and buy HYPE8 ▲% in anticipation of gains, Circle’s profitability could shrink rapidly. This situation could worsen, as the U.S. Federal Reserve is likely to cut rates in September, reducing yields on Treasuries and bonds.

Despite Circle’s liquidity, regulatory compliance, and market cap advantages, USDC’s dominance on Hyperliquid could diminish, impacting CIRCL stock.

(Source: CIRCL,)

As of September 10, CIRCL stock is down 60% from July highs, and with turbulence in Hyperliquid, the likelihood of CIRCL stock falling below $100 has increased.

Hyperliquid USDH vs. Circle USDC: Will CIRCL Stock Crash?

• Hyperliquid is setting up for a native stablecoin, USDH 
• Native Markets likely to be the next issuer 
• Circle sticking to USDC 
• Will CIRCL stock crash below $100?