Coinbase to Become Official USDC Treasury Deployer on Hyperliquid as USDH Stablecoin Phases Out

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Coinbase has been designated as the official treasury deployer for USDC on the Hyperliquid decentralized exchange, deepening institutional integration.The platform’s native USDH stablecoin will be phased out gradually, with Coinbase securing the rights to purchase its brand assets from Native Markets.Hyperliquid’s native HYPE token rallied by 19% following the announcement of the consolidated, USDC-led liquidity structure.

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Cryptocurrency exchange Coinbase has expanded its presence in the decentralized finance ecosystem by becoming the official treasury deployer for USD Coin (USDC) on Hyperliquid. Under the new arrangement, Coinbase will manage stablecoin reserves and deploy USDC as an Aligned Quote Asset (AQA) on the platform. The strategic shift aims to streamline capital efficiency, reduce conversion layers, and concentrate liquidity within a unified stablecoin structure across the prominent derivatives exchange.As part of the infrastructure upgrade, Hyperliquid’s native USDH stablecoin, which was developed by Native Markets, will be gradually phased out. Native Markets has agreed to terms granting Coinbase the right to purchase the USDH brand assets. Despite the transition, immediate changes will not disrupt active trading; existing USDH markets remain fully operational and backed during the migration period. Users can currently redeem USDH for USDC or fiat currencies with zero fees through the dedicated USDH dashboard.To support a seamless migration and minimize operational disruption, the Hyper Foundation is coordinating with deployers of the Hyperliquid Improvement Proposals, specifically HIP-1 and HIP-3. Grant allocations are being prepared for builders and protocol teams integrating USDH products to transition their order books smoothly toward USDC-denominated liquidity before USDH is officially retired. Concurrently, under an upgraded AQAv2 framework, both Coinbase and Circle have committed to staking native HYPE tokens to bolster validator operations and network security.The corporate alignment also introduces a yield-sharing mechanism. Coinbase will share the vast majority of USDC reserve yields generated on the platform with Hyperliquid, mimicking the revenue-generation structure originally introduced by USDH. The protocol plans to utilize these incoming yields to fund network development initiatives, ecosystem grants, and potential token buybacks. Over the past year, USDC supply on Hyperliquid expanded by roughly 200%, reaching an estimated $5 billion.Market response to the institutional partnership was stark. Following the publication of the announcement, Hyperliquid’s native HYPE token surged 19%, rebounding sharply from short-term technical support lines to trade back above the $42 mark, amid a broader doubling of daily spot trading volumes. “USDC is becoming the standard across crypto markets. Coinbase is deploying USDC on Hyperliquid to help grow the ecosystem and scale how capital moves,” Coinbase CEO Brian Armstrong stated regarding the deployment.Disclaimer: This article is for informational purposes only and does not constitute advice of any kind. Readers should conduct their own research before making any decisions.

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