Coinbase and Circle to Activate AQAv2 as USDC Becomes Key Hyperliquid Asset

TLDR

• Coinbase plans to act as treasury deployer for USDC under Hyperliquid AQAv2.
• Circle will manage CCTP and native cross-chain systems for the upgrade.
• USDC is set to become the quote asset for canonical HIP-4 markets.
• USDH markets will stay active during migration but will wind down over time.
• Eligible builders and deployers may receive grants during the USDH shift.

Coinbase and Circle are preparing to activate AQAv2 on USDC for Hyperliquid, placing the stablecoin at the center of the network’s next market upgrade. Coinbase will act as treasury deployer, while Circle will manage technical deployment for CCTP and cross-chain tools. The plan also starts a gradual USDH wind-down as USDC gains wider quote status across markets over coming months. 

Coinbase and Circle Take AQAv2 Roles

Coinbase has announced plans to activate AQAv2 on USDC for Hyperliquid. The company will serve as the treasury deployer. This role links Coinbase to USDC reserve deployment for the network. Coinbase is also expected to share most reserve yield revenue with the protocol. 

The plan gives USDC a larger role in Hyperliquid’s stablecoin structure. It also places Coinbase inside the network’s treasury model. Circle will serve as the technical deployer for the plan. Its work will cover CCTP and native cross-chain infrastructure. 

Both Coinbase and Circle have also committed to stake HYPE to activate AQAv2. The roles create a split operating model. Coinbase will manage treasury deployment, while Circle will support the technical systems. Hyperliquid will remain the ecosystem party tied to the network upgrade.

USDC Moves Toward Hyperliquid Quote Status

USDC is set to become the quote asset for canonical outcome markets under HIP-4. This change is planned for a future Hyperliquid network upgrade. The move is designed to reduce stablecoin pair fragmentation. User and builder feedback pointed to weaker market experience when liquidity is split. 

A single quote asset can simplify trading paths. It can also reduce the need to move between USDH and USDC markets. Native Markets has agreed to terms granting Coinbase the right to purchase USDH brand assets. USDH markets will remain fully functional during the transition. 

However, those markets are expected to sunset over the coming months. USDH remains fully backed under the transition plan. Users will have access to feeless conversions into USDC and fiat. This gives users a direct route while markets move toward USDC.

USDH Migration Receives Builder Support

The Hyper Foundation plans to provide grants to eligible HIP-3 deployers and HIP-1 deployers. Builders who integrated USDH may also qualify for support. These grants are designed to help teams during migration.

Native Markets launched USDH as a production-scale stablecoin that shared yield with a protocol. Its onchain structure helped shape the mechanics used in AQAv2. Those mechanics will continue under the new USDC model. The change places Coinbase, Circle, and Hyperliquid in separate roles. 

Coinbase acts as the deployment party. Circle handles technical deployment, and Hyperliquid remains tied to the ecosystem upgrade. The transition also changes how stablecoin liquidity is organized on Hyperliquid. USDC will take a central market role, while USDH moves toward a phased exit. The plan keeps conversions open as the network shifts to AQAv2.

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