Coinbase announced it will become the official treasury deployer of the USDC stablecoin on the Hyperliquid network. This move, part of Hyperliquid’s Aligned Quote Asset framework, aims to consolidate liquidity around USDC as the primary stablecoin for on-chain capital markets. The existing USDH stablecoin will be gradually phased out, while remaining fully redeemable for USDC.
Coinbase will expand support for USDC on Hyperliquid by becoming the official treasury deployer under the network’s Aligned Quote Asset framework. The company stated this aims to strengthen USDC’s position as the primary stablecoin used across on-chain capital markets.
Concentrating liquidity around USDC could improve market efficiency by allowing capital to move more freely across trading venues. Users will maintain access to USDC through Coinbase’s fiat on-Land off-ramps and its global network.
The AQA framework was originally introduced by Native Markets to build a stablecoin platform for Hyperliquid. Coinbase will now assume the role of AQA deployer, while Native Markets agreed to terms giving Coinbase the right to acquire the USDH brand assets.
USDH markets will remain operational for now but will be gradually phased out over time. Coinbase revealed USDH remains fully backed, and users can continue converting it to USDC without fees or redeeming for fiat during the transition.
Native Markets will continue handling those conversions and redemptions. “Since launch, Hyperliquid has seen rapid growth and quickly became a predominant onchain trading network,” Coinbase noted in its announcement.
Hyperliquid separately revealed that Circle will serve as the technical deployer overseeing CCTP services and native cross-chain infrastructure. Both Circle and Coinbase have committed to staking HYPE tokens to support AQAv2 activation.
As the treasury deployer, Coinbase is expected to share the majority of the reserve yield revenue with the protocol. A future network upgrade will transition canonical outcome markets to using USDC as the quote asset.
Hyperliquid debuted in November 2024 and has established itself as a major player in on-chain crypto trading, particularly in perpetual futures markets. The platform gained further institutional attention this week with the launch of the first ETF providing exposure to its HYPE token.
