USDC Token Makes Debut on Hyperliquid Platform Before USDH Introduction in the U.S.
In a significant move, Circle, a leading financial technology firm, has become a stakeholder in the Hyperliquid ecosystem. This partnership has resulted in the launch of a native version of Circle's USDC stablecoin on Hyperliquid, paving the way for a more integrated and seamless digital economy.
The native USDC stablecoin, developed by Circle, is set to be followed by Hyperliquid's own USDH stablecoin, according to statements from Native Markets, the token's issuer on Hyperliquid. The imminent deployment of USDH is expected to further strengthen the collaboration between the two entities.
In a move that signals Circle's commitment to Hyperliquid, the company has also made an investment in Hyperliquid's native token, HYPE. This investment comes before the rollout of Hyperliquid's own stablecoin, USDC, and is a testament to Circle's confidence in the Hyperliquid ecosystem.
The launch of the native USDC on Hyperliquid is accompanied by the upgraded Cross-Chain Transfer Protocol version 2 (CCTP V2) on Hyperliquid's HyperEVM. This upgrade is expected to improve the efficiency and speed of transactions on the platform.
Interestingly, an onchain transfer flagged by pseudonymous researcher MLM on Sept. 12 showed a wallet linked to Circle bought $4.6 million worth of HYPE tokens. However, the amount Circle invested in HYPE was not disclosed.
If Hyperliquid transitions all $5.9 billion USDC collateral to USDH, Circle could potentially lose approximately $200 million in annual reserve income. This potential loss underscores the risk-reward balance that Circle is navigating in its strategic investment in Hyperliquid.
Furthermore, Circle is exploring the possibility of becoming a network validator on Hyperliquid, deepening its involvement in the platform. This potential role could provide Circle with a greater say in the governance and direction of the Hyperliquid network.
In conclusion, Circle's investments and stakeholdership in Hyperliquid mark a significant step forward in the integration of traditional finance with the digital economy. As the partnership continues to evolve, both entities stand to benefit from each other's strengths, fostering a more robust and efficient digital economy.
