Circle eyes deeper ties with Hyperliquid through potential native USDC launch
Stablecoin issuer Circle seems set to deepen its position in decentralized finance by making ready a native launch of USD Coin (USDC) on Hyperliquid’s Layer 1 chain, HyperEVM.
On Sept. 12, blockchain researcher MLM Blockchain flagged take a look at transactions involving USDC on HyperEVM’s mainnet, suggesting {that a} native deployment might roll out within the coming weeks.
Adding to hypothesis, the identical pockets related to Circle not too long ago acquired about $5 million value of Hyperliquid’s HYPE token.
The buy strengthened the view that Circle is positioning itself extra deeply within the Hyperliquid ecosystem. If the launch goes dwell, HyperEVM would be part of 24 different networks that already assist USDC, together with Ethereum, Solana, and the XRP Ledger.
Circle’s USDC is the second-largest stablecoin within the trade, with a market capitalization of greater than $72 billion. Hyperliquid, then again, is the dominant decentralized perpetual alternate, controlling greater than 60% of the market.
USDC state of affairs on Hyperliquid
The potential launch follows a public assertion from Circle CEO Jeremy Allaire, who wrote that the corporate intends to be “a serious participant and contributor” throughout the Hyperliquid ecosystem.
According to him:
“We are coming to the HYPE ecosystem in an enormous approach. We intend to be a serious participant and contributor to the ecosystem. Happy to see others buy new USD tickers and compete Hyper quick native USDC with deep and practically on the spot cross chain interoperability will probably be nicely obtained.”
Yet Circle’s push comes as Hyperliquid prepares to introduce its native stablecoin, USDH. That undertaking has drawn consideration from major players such as Native Market, Paxos, OpenEden, and Agora, signaling an actual problem to Circle’s place.
Over the previous yr, Hyperliquid has relied closely on Circle’s stablecoin to energy its markets, with round $5.773 billion in USDC provide on the platform. That focus means Hyperliquid accounts for roughly 8% of all USDC in circulation, making it certainly one of Circle’s most dominant chains, in line with DeFiLlama information.
So, ought to liquidity migrate to USDH, Circle might lose as a lot as $200 million in annual income, which could impression its enterprise.
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