Hyperliquid Picks USDC as Its Core Stablecoin in Coinbase Deal to Unify On-Chain Liquidity

Hyperliquid has selected USDC as its core stablecoin for settlement, as part of a strategic partnership with Coinbase and Circle. The move is designed to unify on-chain liquidity and reduce the friction caused by multiple stablecoin standards on the platform.

Under the agreement, Coinbase will act as the treasury deployer for Hyperliquid's AQAv2 mechanism using USDC, while Circle will serve as the technical deployer responsible for the Cross-Chain Transfer Protocol (CCTP) and native cross-chain infrastructure. Both companies have committed to staking HYPE to activate AQAv2, signaling a long-term investment in the Hyperliquid ecosystem.

The partnership also includes a yield-sharing arrangement: Coinbase will return 80% of the yield earned from its USDC reserves to the Hyperliquid protocol. This fee-sharing structure is intended to boost protocol incentives and provide users with a deeply backed dollar-denominated asset.

As part of the shift, the USDH stablecoin brand will be gradually phased out. However, its underlying geometric concepts will be incorporated into the design of AQAv2. The Hyper Foundation will offer grants to eligible HIP-1 and HIP-3 deployers, as well as developers who integrated USDH, to help them migrate to USDC. Existing USDH markets will remain operational during the transition, and users will be able to withdraw USDH to fiat or USDC without fees during the sunset period.

Hyperliquid noted that the consolidation around USDC should improve execution quality, reduce builder friction, and create a more unified experience for decentralized applications. The announcement follows an earlier partnership in early 2025 between Coinbase, Circle, and Hyperliquid to accelerate USDC adoption on the Layer-1 network and decentralized exchange.