Hyperliquid Integrates Circle USDC and Cross Chain Transfer

TLDR

Hyperliquid adds native USDC deposits via Circle’s CCTP V2, enabling seamless cross-chain transfers without third-party bridges.
Circle invests in HYPE tokens and may operate as a validator to strengthen its role in the Hyperliquid ecosystem.
Hyperliquid processes 14% of Binance’s trading volume, generating about $30M in weekly fees and $100M in HYPE buybacks.
Hyperliquid plans to launch USDH stablecoin, which could challenge USDC and cut Circle’s annual revenue by up to $200M.

Hyperliquid has announced the integration of Circle’s USDC stablecoin and Cross-Chain Transfer Protocol V2 (CCTP V2) on its Ethereum-compatible HyperEVM network. The move allows native USDC deposits and seamless cross-chain transfers, strengthening institutional and retail access to decentralized trading and financial services. Circle’s investment in Hyperliquid and plans to operate as a validator reinforce its commitment to the platform’s growth and liquidity.

Hyperliquid News: Native USDC Support on HyperEVM

Table of Contents

Hyperliquid’s integration of Circle’s USDC adds direct support for the stablecoin within its HyperEVM platform. By adopting Circle’s upgraded CCTP V2, the decentralized exchange now enables native USDC deposits without the need for wrapped tokens. This development simplifies asset management for users and reduces risks associated with third-party bridges.

The CCTP V2 framework burns USDC on the origin chain and mints the same amount on the destination network. This process ensures faster and more secure transfers, streamlining liquidity flows across multiple blockchains.

For traders and developers, this setup provides a cost-effective and reliable way to manage stablecoin transactions within decentralized applications and smart contracts.

Cross-Chain Access and Institutional Growth

Furthermore, the integration supports wider cross-chain access and aligns with Hyperliquid’s goal to attract institutional participants. Through CCTP V2, users can move USDC across more than a dozen supported networks, lowering the operational barriers for fintech firms, payment providers, and decentralized applications.

Circle’s decision to become a direct stakeholder strengthens this initiative. The company has acquired HYPE tokens and is evaluating validator operations to secure deeper participation in the network. These steps indicate a long-term strategy to expand USDC’s role in decentralized finance and maintain market relevance as new stablecoins emerge.

Market Liquidity and Developer Incentives

In addition, Circle’s presence is expected to support Hyperliquid’s growing trading volumes and liquidity. According to data from Delphi Digital, Hyperliquid now handles about 14% of Binance’s trading activity, generating around $30 million in weekly fees and conducting $100 million in HYPE token buybacks since August. Roughly 7% of the global USDC supply already resides on the network, highlighting strong demand for stablecoin-backed trading pairs.

To further boost adoption, Circle and Hyperliquid are introducing developer incentive programs and software development kits. These resources are designed to help fintech firms and decentralized application builders integrate USDC into their products more efficiently. The approach aims to create a broad base of developers and traders who can leverage seamless stablecoin transfers and deeper liquidity pools.

Competition Emerges with Native USDH Stablecoin

Even so, Hyperliquid’s plan to launch its own native stablecoin, USDH, presents potential competition. Analysts estimate that if USDH gains significant traction, Circle could face up to $200 million in annual revenue losses from reduced USDC transaction volumes. This dynamic underscores the importance of Circle’s early investment and technological integration, which may help maintain USDC’s dominance on the network.

Despite these competitive pressures, Circle’s native USDC and CCTP V2 launch provide a strong foundation for sustained growth. With Circle earning over $109 million from USDC use on Hyperliquid to date and deposits increasing in September, the stablecoin remains a key liquidity source and trading pair across the platform.

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