Circle Explores Deeper Hyperliquid Integration with Potential Native USDC Launch

Circle takes aim at DeFi dominance with Hyperliquid integration talks heating up.

Strategic Expansion

The stablecoin giant eyes native USDC deployment on Hyperliquid's L1—cutting settlement times and bypassing bridge vulnerabilities that plague cross-chain transfers. No more wrapping fees or third-party risks.

Market Positioning

This move pressures competitors still relying on multichain band-aids. Hyperliquid's perpetual trading volume spikes 40% quarterly—Circle wants in before rivals grab market share.

Institutional Appeal

Native integration means tighter spreads and instant settlements—exactly what hedge funds demand but rarely get in crypto's fragmented liquidity landscape. Finally, real infrastructure instead of promises.

Because nothing says 'mature market' like chasing yield across twelve different blockchains while praying the bridge doesn't evaporate.

USDC situation on Hyperliquid

The potential launch follows a public statement from Circle CEO Jeremy Allaire, who wrote that the company intends to be “a major player and contributor” within the Hyperliquid ecosystem.

According to him:

“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 interoperability will be well received.”

Yet Circle’s push comes as Hyperliquid prepares to introduce its native stablecoin, USDH. That project has drawn attention from major players such as Native Market, Paxos, OpenEden, and Agora, signaling a real challenge to Circle’s position.

Over the past year, Hyperliquid has relied heavily on Circle’s stablecoin to power its markets, with around $5.773 billion in USDC supply on the platform. That concentration means Hyperliquid accounts for roughly 8% of all USDC in circulation, making it one of Circle’s most dominant chains, according to DeFiLlama data.

So, should liquidity migrate to USDH, Circle could lose as much as $200 million in annual revenue, which might impact its business.