Coinbase Becomes Hyperliquid’s Official USDC Treasury Deployer, Increases HYPE Position

Crypto exchange Coinbase has expanded its support for Hyperliquid, becoming the perp DEX’s official USDC treasury deployer. The exchange has also acquired the rights to the DEX’s native stablecoin USDH, which it revealed will sunset over time.

Coinbase Expands Support For Hyperliquid With USDC Treasury Role

In an X post, the crypto exchange announced that it is now Hyperliquid’s official treasury deployer of USDC as an Aligned Quote Asset (AQA). “Onchain markets operate 24/7 and require collateral that is always available, instantly transferable, and deeply liquid – USDC delivers exactly that,” the exchange said.

Coinbase noted that USDC has been the leading stablecoin on the crypto leverage trading platform since its launch in 2023 and has seen rapid growth within the ecosystem. This move is expected to further solidify the stablecoin’s position as the platform’s primary collateral token.

Coinbase also announced that they have “significantly” increased its staked HYPE position as part of this new partnership. The Hyperliquid token is up over 5% on the back of this announcement, trading at around $41, according to TradingView data.

Meanwhile, COIN stock is down amid the announcement that Coinbase is becoming Hyperliquid’s official USDC treasury deployer. TradingView data shows that Coinbase’s stock is currently trading at around $197 at the market open today, down over 2%.

Coinbase To Acquire Rights To The USDH Brand Assets

The top crypto exchange also announced that, as part of this transition, Native Markets has agreed to terms granting them the right to purchase the USDH brand assets. Native Markets launched Hyperliquid’s native stablecoin, USDH, last year.

Coinbase revealed that the USDH markets are still fully functional but will sunset over time. “USDH remains fully backed, with feeless conversions to USDC and redemptions for fiat available to users during this transition,” it added.

Commenting on this development, Moonrock Capital founder Simon Dedic described it as a massive win for USDC in capturing the Hyperliquid market over USDT. “Very bullish for Circle,” he said.

He also commented on the move to sunset USDH over time, noting that it shows that there is no such thing as native ecosystem alignment anymore, not even in a community-driven ecosystem such as Hyperliquid. “In the end, users care about liquidity, distribution, and the network effects that come with them. We’ll continue to see the crypto landscape consolidate like that,” he concluded.