USDC Depth Integration into the Hyperliquid Ecosystem: Circle's First Investment in HYPE, Strengthening Its Core Position in Decentralized Finance

As the issuer of USD Coin (USDC), Circle announced a direct investment in the Hyperliquid ecosystem, marking its first purchase of HYPE Token, further expanding its business footprint in the Decentralized Finance (DeFi) sector. This move is accompanied by the official launch of native USDC and CCTP V2 (cross-chain transfer protocol V2) on Hyperliquid, positioning USDC firmly at the core of this rapidly growing DeFi platform and potentially bringing more liquidity to the Crypto Assets market.

USDC liquidity surge, Circle aims for validator role

According to Circle's official announcement, the native USDC will be deployed on Hyperliquid's smart contract layer HyperEVM, allowing users to perform deposit operations in any application built on HyperCore and its network. This integration will also introduce the interoperability of CCTP V2, enabling users to efficiently transfer USDC between Hyperliquid and other supported blockchains, achieving complete and efficient utilization of funds. This series of deep collaborations will effectively promote the adoption of USDC in the Decentralized Finance sector, attracting more Crypto Assets users.

As early as July, Circle announced that the native USDC and the cross-chain transfer protocol CCTP V2 would soon go live on the trading platform Hyperliquid designed for Decentralized Finance. Circle emphasized that the USDC issued on Hyperliquid will continue to maintain a 1:1 dollar reserve and can be redeemed at any time, while also benefiting from institutional-grade deposit and withdrawal channels such as Circle Mint.

The integration coincides with Hyperliquid becoming a liquidity center for stablecoins. The platform's Assets Under Management (AUM) has recently surpassed $5.5 billion, up from $4 billion in early July. Circle attributes $1.2 billion of this increase to the influx of new USDC, highlighting the key role of USDC in the Hyperliquid trading environment. Notably, Hyperliquid has captured 70% of the USDC liquidity share on Arbitrum, underscoring its dominance in the stablecoin trading space.

In addition, Circle stated that its new identity as a HYPE Token holder is part of a broader involvement in the Hyperliquid community program, which includes support for HIP-3 and HyperEVM developers. The company also noted that it is evaluating the possibility of becoming a Hyperliquid validator to further strengthen its role in the crypto ecosystem. For traders and developers, the addition of native USDC is expected to expand use cases on the platform, bringing more Decentralized Finance innovations to crypto users. USDC can now be used as collateral for perpetual contracts, serve as a quoted asset for spot trading pairs, or be integrated into HyperEVM applications, such as vault management tools, payment systems, and other financial products. The interoperability of CCTP V2 will also enable efficient cross-chain fund inflows, token swaps, and asset portfolio rebalancing.

Circle praises Hyperliquid, consolidating partnership

Circle pointed out that this integration is built upon its efforts over nearly eight years to establish USDC as the global digital dollar standard. Since its launch, USDC has supported nearly $40 trillion in on-chain transactions and has minted and redeemed over $1 trillion to date. Circle also mentioned its regulated infrastructure and banking relationships in key markets, including the US, UK, EU, Singapore, Hong Kong, Brazil, Japan, and the upcoming UAE, which are the cornerstone of USDC's core liquidity.

The recent expansion of Hyperliquid comes at a time when the decentralized exchange continues to set new highs. In August, Hyperliquid generated $106 million in revenue from perpetual contract trading, a 23% increase from July's $86.6 million. According to DefiLlama data, the platform's monthly trading volume also reached $383 billion at that time, with an annualized revenue of $1.25 billion. Circle described Hyperliquid as one of the most impressive communities in the crypto space, reflecting its decision to make direct investments and provide deep support. With USDC now integrated into Hyperliquid's core infrastructure, both companies view this move as an important step toward expanding stablecoin adoption in Decentralized Finance.

The stablecoin market approaches 300 billion USD, with rise and fragmentation coexisting

In 2025, stablecoins have become one of the most prominent trends in Crypto Assets, attracting increasing attention as the Trump administration promotes their development through measures like the GENIUS Act to solidify the status of the USD. The industry surpassed a market capitalization of $200 billion by the end of 2024 and is now nearing a market cap of $300 billion, although estimates vary.

CoinMarketCap recently reported a total of 300 billion USD, while another platform and DeFiLlama set it at 291 billion USD and 289 billion USD respectively, reflecting differences in tracking methods. July marked an important milestone, with the total market value of stablecoins reaching a historical high of 261 billion USD, continuing a growth momentum that has lasted for 22 months. Trading volume also saw significant growth, with centralized exchanges recording stablecoin trading pairs worth 1.6 trillion USD in July. Tether (USDT) maintained its leading position, rising 3.6% to 164 billion USD, although its dominance slightly declined. USD Coin (USDC) rose 3.8% to 63.6 billion USD, while Ethena's USDe, despite a decrease in staking yields, soared 43.5% to 7.6 billion USD. Falcon Finance's USDf experienced the most rapid increase, skyrocketing 121% to 1.07 billion USD, while BlackRock's BUIDL and First Digital Labs' FDUSD recorded significant declines.

Bridge's new data shows that stablecoin transactions have surpassed $2.5 trillion in recent months, while Chainalysis found that USDT processes over $1 trillion in transactions each month from mid-2024 to mid-2025. Additionally, in peak months, USDC's processing volume reached $3.3 trillion, indicating its growing role in regulated channels. Analysts point out that while USDT dominates as digital cash in emerging markets, smaller stablecoins like USDC, EURC, and PYUSD are catching up, signaling a more fragmented but rapidly expanding crypto market.

Conclusion

The deep cooperation between Circle and Hyperliquid not only symbolizes an important strategic layout of USDC in the DeFi field but also sets a new milestone for the future development of Decentralized Finance. This integration showcases the core value of native stablecoins and cross-chain technology in building an efficient and interconnected Crypto Assets ecosystem. As the stablecoin market continues to grow, USDC is actively responding to market competition through close collaboration with leading platforms and exploring new use cases and growth points to consolidate its leadership in the global digital dollar space.