TLDR
- Circle is now a HYPE token holder and has launched native USDC on Hyperliquid’s HyperEVM
- The stablecoin issuer is considering becoming a Hyperliquid validator
- This move comes shortly after Hyperliquid selected Native Markets to issue its own stablecoin (USDH)
- Circle will integrate its Cross-Chain Transfer Protocol (CCTP v2) into Hyperliquid
- Hyperliquid remains the largest onchain derivatives platform with nearly $150 billion in September trading volume
Stablecoin issuer Circle has expanded its presence in the decentralized finance sector by making a direct investment in Hyperliquid and launching its USD Coin (USDC) natively on the protocol. The announcement comes as competition among stablecoin providers heats up on the popular derivatives trading platform.
According to Tuesday’s announcement, Circle has become a stakeholder in the Hyperliquid ecosystem by directly holding its native cryptocurrency, HYPE. The company is also evaluating the possibility of becoming a validator for the protocol, which would further cement its commitment to the platform.
Native @USDC & CCTP V2 is now live on HyperEVM – part of @HyperliquidX’s high-performance ecosystem.
Developers, institutions, and traders can now access the world’s largest regulated stablecoin on HyperEVM, and securely make crosschain deposits from over a dozen blockchains.… pic.twitter.com/gVEMo48t0h
— Circle (@circle) September 16, 2025
The integration begins with rolling out USDC on Hyperliquid’s Ethereum-compatible HyperEVM network, with plans to expand to HyperCore in the coming weeks. Circle CEO Jeremy Allaire outlined these developments in a recent blog post.
“We are seeking to build long-term shareholder value, and that means investing in products and distribution as we work towards an internet economy that ultimately could support hundreds of trillions of dollars in economic activity,” Allaire stated.
Stablecoin Competition Intensifies
Circle’s move closely follows a contentious, week-long competition to select an issuer for Hyperliquid’s own native stablecoin. On Sunday, the protocol announced that its validator community had chosen Native Markets to issue the upcoming USDH stablecoin.
Native Markets, a startup co-founded by an early Hyperliquid contributor, will manage Hyperliquid’s USD reserves and issue USDH. The stablecoin will be released in stages on HyperEVM, starting with a small-scale testing phase before opening a USDH/USDC spot trading pair.
When announcing the winning bid, Hyperliquid confirmed that USDC and other stablecoins would continue to be supported on the platform as quote assets if they met certain requirements. These include a 200,000 HYPE stake (worth about $10 million), a robust $1 peg mechanism, and minimum depth against USDC and HYPE.
USDC is currently the dominant dollar-backed stablecoin on Hyperliquid, with nearly $6 billion worth of USDC reserves held by the platform, according to DefiLlama data. Circle had previously announced plans to expand into the Hyperliquid ecosystem in July, with a company spokesperson telling Cointelegraph that “Today’s launch is simply delivering on that roadmap.”
Cross-Chain Capabilities
Circle’s native integration will lower barriers for HyperEVM users to transfer USDC across over a dozen supported networks, facilitating cross-chain exchanges. The CCTP v2 and planned HyperCore support will enable “fintechs, on- and off-ramp providers, and other services” to integrate with Hyperliquid.
The stablecoin issuer also plans to work with HIP-3 and HyperEVM developers and has announced “a new set of dedicated incentive programs” to encourage USDC usage on the platform.
Hyperliquid is a decentralized finance ecosystem that specializes in derivatives trading. In July, the protocol hit $330 billion in trading volume nearly a year after launching its layer-1 network.
Currently, about 430 million HYPE tokens are staked on the network. Top validators include Galaxy Digital, Flowdex and the Hyper Foundation, which supports Hyperliquid’s development.
Hyperliquid remains by far the largest onchain derivatives platform, accounting for nearly $150 billion of September’s monthly transaction volumes out of nearly $200 billion total, according to The Block’s data. However, while Hyperliquid outcompetes other onchain trading platforms, it still lags behind centralized exchanges like Binance in the perpetual options business.
HYPE is currently trading around $53.81 with a market capitalization of $14.6 billion, according to The Block’s price page.
Circle went public on June 5, raising $1.1 billion by selling 34 million shares. The company’s stock closed over 200% higher on its first trading day, though some analysts have since expressed concerns about growing competition among stablecoin issuers following the passage of the GENIUS Act, as well as Circle’s rising distribution costs.
USDC is currently available on approximately two dozen networks with over $73 billion worth in circulation.
The broader decentralized finance sector has continued to expand in 2025, with total value locked across all protocols rising to $158 billion as of Tuesday, up 35% from $117 billion in December 2024.
