Circle to Integrate Hyperliquid, Aiming to Boost Market Share

USDC Deal Analysis

Bankless has examined the recent collaboration between Hyperliquid (HYPE), Coinbase (COIN), and Circle (CRCL), moving beyond the typical “partnership announcement” narrative to assess its potential impact on USDC. The analysis suggests the deal is more than a public relations exercise, particularly given the growing momentum in the stablecoin market, where deeper shifts in market share have been slower than some investors anticipate. Bankless views USDC’s current position as significant but incomplete, positioning Hyperliquid as the platform that could help Circle’s stablecoin translate momentum into tangible market share gains.

As reported by Bitcoinist, Coinbase is expanding its role by becoming the official treasury deployer of USDC on Hyperliquid. Under this plan, Coinbase will treat USDC as an Aligned Quote Asset (AQA), with Hyperliquid’s USDH token expected to be phased out gradually.

Bankless highlights concrete improvements resulting from this move, including a significantly improved revenue split—roughly double what Hyperliquid was earning with USDH—along with additional regulatory and institutional support. The report also emphasizes user experience benefits, given that USDC is a trusted stablecoin already integrated into the exchange experience for many traders. Bankless notes that USDC is primarily used in Hyperliquid’s HIP-3 markets, which have driven much of the platform’s visibility over the past six months.

The analysis then shifts to a more strategic perspective. Bankless argues that the Coinbase and Circle deal is more than just “PR” because, despite USDC’s momentum following the GENIUS Act approval, its supply share has not meaningfully changed. Hyperliquid is presented as the solution to this mismatch, offering an additional distribution channel that could allow stablecoin growth to compound rather than merely coexist with the current market dynamics.

Binance Reinforces USDT Dominance

To support the claim that USDC’s supply share is stagnant, Bankless points to the stablecoin market composition. In April 2024, Tether’s USDT held 67% of the stablecoin supply, while USDC held 27.6%. A year later, USDT holds 67.3% and USDC 28.1%. While USDC transaction volume is accelerating, the structural picture remains largely unchanged, which the report identifies as the central problem.

The report argues that this is due to USDC’s strength in the United States, where competition is concentrated. Outside the US, USDT remains the default dollar for saving, investing, and trading, creating a tougher environment for USDC to establish itself as the base currency across global trading venues. Therefore, distribution is presented as the priority, with perpetuals framed as the natural battleground. Stablecoins are the quote asset for perpetuals, and the ecosystem that dominates the largest exchange tends to reinforce itself. On Binance, USDT is the standard against which many of the largest markets trade. This means traders frequently transact against USDT, strengthening its supply, liquidity, deposits, withdrawals, and on-chain activity.

Hyperliquid May Fix That

Hyperliquid, according to Bankless, offers USDC a way to combat this cycle. The report includes market indicators to demonstrate Hyperliquid’s share in the perpetuals ecosystem. It claims Hyperliquid holds 30% of the on-chain perpetuals market share, commands 46% of on-chain open interest, and operates at approximately 50% of Bybit’s volume, around 30% of OKX’s volume, roughly 79% of Coinbase International’s, and about 13% of Binance’s.

While Hyperliquid is still smaller than Binance overall, Bankless suggests the trend is clear: perpetuals are becoming an environment where USDC can gain more consistent exposure. The conclusion is that Coinbase and Circle can leverage Hyperliquid’s reach while USDC benefits from being the stablecoin underpinning the trading activity.