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Coinbase is expanding its support for Hyperliquid by becoming the platform’s official treasury deployer for USDC, formalizing a deeper integration around the stablecoin as the network prepares to activate its upgraded Aligned Quote Asset framework, AQAv2.
The collaboration positions USDC as Hyperliquid's increasingly central collateral and quote asset across onchain trading activity. Under the arrangement, Coinbase will oversee treasury operations tied to USDC on Hyperliquid, while Circle will serve as the technical deployer responsible for minting, redemption, and native crosschain transfers through its Cross-Chain Transfer Protocol, or CCTP.
Both Coinbase and Circle have also committed to staking HYPE tokens to activate AQAv2, further aligning the stablecoin infrastructure with the broader Hyperliquid ecosystem.
The move comes as USDC supply on Hyperliquid has grown to roughly $5 billion, approximately doubling year over year. Coinbase said the stablecoin has served as the leading dollar asset on Hyperliquid since the network launched in 2023, with growing adoption driven by the always-on nature of onchain markets, which require collateral that is continuously available, deeply liquid, and instantly transferable.
AQAv2 also marks the beginning of a transition away from USDH, Hyperliquid’s native stablecoin launched by Native Markets in 2025. As part of the migration, Native Markets has agreed to terms granting Coinbase the right to acquire USDH brand assets, while USDH markets will remain operational during a phased sunset period.
Hyperliquid said users will continue to have access to feeless conversions between USDH, USDC, and fiat during the transition, with the Hyper Foundation planning grants for builders, deployers, and teams that previously integrated USDH products.
The shift follows what Hyperliquid described as consistent feedback from users and developers that liquidity fragmentation created unnecessary friction across the ecosystem. By consolidating liquidity around USDC while preserving protocol alignment through AQAv2, the network aims to reduce the need to choose between liquidity depth and ecosystem incentives.
A key component of the arrangement is revenue sharing. According to Hyperliquid, Coinbase will share the majority of reserve yield revenue generated through its treasury deployer role with the protocol, creating a new source of ecosystem funding tied directly to stablecoin growth.
The transition is also expected to shape future market infrastructure on Hyperliquid. The protocol said canonical outcome markets built through HIP-4 will eventually adopt USDC as their quote asset in a future network upgrade.
Hyperliquid framed AQAv2 as an evolution of ideas pioneered by USDH, which it described as the first production-scale stablecoin to share yield directly with a protocol through a fully onchain implementation. While USDH will sunset over time, the mechanics introduced through the product are expected to remain embedded within the upgraded framework.
