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- Coinbase becomes Hyperliquid’s official USDC treasury deployer under AQA model.
- Hyperliquid will phase out USDH as it shifts order books toward USDC liquidity.
- USDC supply on Hyperliquid reached $5 billion after nearly 200% yearly growth.
Coinbase has become the official treasury deployer of USDC as an Aligned Quote Asset on Hyperliquid, expanding the stablecoin’s role across the on-chain trading platform and supporting a wider shift toward USDC-based liquidity.
The announcement places USDC as the preferred stablecoin and quote asset across Hyperliquid’s 24/7 on-chain capital markets. The integration is designed to concentrate liquidity in one asset, improve pricing efficiency, and reduce the need for repeated stablecoin conversions.
Coinbase Moves Into Hyperliquid’s AQA Framework
Coinbase CEO Brian Armstrong said in an X post that USDC is becoming a standard across crypto markets. He added that Coinbase is deploying USDC on HyperliquidX to help expand the ecosystem and scale capital movement.
As part of the transition, USDH developer Native Markets granted Coinbase the right to purchase USDH brand assets. USDH was developed as Hyperliquid’s native stablecoin under the Aligned Quote Asset framework.
The stablecoin will gradually be phased out as Hyperliquid shifts toward USDC-denominated liquidity. Coinbase said in a blog post that it will build on the foundations created by Native Markets and USDH while taking on the role of an AQA deployer.
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Native Markets will continue operating as an independent entity after the transition. The company plans to focus on future ecosystem initiatives while supporting the migration process.
During the period of migration, all existing USDH markets will continue to function as normal. Native Markets dashboard will also still allow users to redeem with no fees into USDC or fiat
Coinbase Shares USDC Reserve Yields With Hyperliquid
With the enhanced model, known as AQAv2, Coinbase and Circle have both pledged to stake HYPE in order to activate the framework. Coinbase will act as the treasury deployer and receive most of the useful USDC reserve yields and share them with Hyperliquid!
This kind of yield-sharing model was originally made available by USDH. It will serve as a source of protocol revenue, possible HYPE buybacks, ecosystem grants, and wider network growth.
Hyperliquid said that the Hyper Foundation will also provide grants to qualifying HIP-3 and HIP-1 deployers. To help accelerate the movement of order books towards USDC, builders integrating with USDH products may also receive support.
USDC has grown significantly on Hyperliquid over the last year. The supply on the platform was about $5 billion, up almost 200% year-on-year.
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