Crypto News: Hyperliquid Expands USDC Stablecoin Role With Coinbase Deal

Coinbase will manage USDC treasury deployment on Hyperliquid as the network gradually phases out USDH, the stablecoin developed by Native Markets. The agreement deepens Coinbase’s role inside one of DeFi’s fastest-growing trading ecosystems while strengthening USDC’s position across onchain derivatives markets.

Crypto News: Coinbase Takes Official USDC Role

Coinbase will serve as Hyperliquid’s official treasury deployer for USDC under the network’s Aligned Quote Asset framework. The AQA system connects stablecoin liquidity directly with Hyperliquid’s trading infrastructure and supports reserve yield sharing with the protocol.

The crypto news gives Coinbase a clearer position inside the Hyperliquid crypto ecosystem. USDC already serves as the leading stablecoin on the network, and Coinbase said its support will deepen the stablecoin’s onchain role. The company also described the move as one of the most direct stablecoin integrations across crypto trading infrastructure.

Native Markets, which operates USDH, agreed to grant Coinbase the right to purchase USDH brand assets. The arrangement supports the transition from USDH to USDC, while keeping user redemption open during the migration period.

USDH Begins Gradual Sunset

USDH will not disappear immediately. Native Markets said users can continue redeeming USDH for USDC or fiat without fees through its dashboard over the coming months. The team also said USDH remains fully backed and maintained during the transition.

Native Markets plans to work with HIP-3 and HIP-1 deployers to complete the migration before USDH sunsets. That approach gives users time to move funds without a sudden break in liquidity access or platform support.

The shift matters for Crypto news readers tracking stablecoin competition. USDH entered Hyperliquid through the AQA framework in 2025, while USDC has held a larger role since the platform launched. Coinbase’s entrance now gives USDC stronger institutional backing inside the network.

Hyperliquid Expands Stablecoin Liquidity Base

Hyperliquid has grown quickly since its launch as an onchain perpetuals trading platform. The network runs on a high-performance Layer 1 blockchain and has attracted traders with fast execution, deep liquidity, and lower costs.

The Hyperliquid crypto market has become one of the largest areas of onchain derivatives activity. The Block’s data shows the chain leads market share by fees, with roughly 40% across major blockchain networks. Much of that revenue comes from perpetual trading, where users pay fees to open, manage, and close leveraged positions.

USDC supply on Hyperliquid has also expanded. Coinbase said the stablecoin’s supply on the network has roughly doubled year over year to about $5 billion. That growth shows how stablecoins now support settlement, collateral, and trading activity across DeFi venues.

The network’s profile has also risen beyond spot trading and perpetuals. Earlier this week, 21Shares launched the first Hyperliquid exchange-traded fund offering exposure to HYPE. That product added another marker of market attention around Hyperliquid crypto activity.

Stablecoins Move Deeper Into Trading

The Coinbase deal shows how stablecoins now sit closer to exchange infrastructure. Instead of operating only as separate dollar tokens, stablecoins increasingly support trading, collateral management, treasury systems, and settlement flows.

Also, the move expands USDC beyond centralized exchanges and Ethereum-based activity. It gives Coinbase a direct role in one of the fastest-growing DeFi trading venues while also supporting broader use of USDC across on-chain markets.

Meanwhile, in other crypto news, the Clarity Act faces a key May 14 vote as lawmakers remain divided over ethics rules, DeFi exemptions, and protections for non-custodial developers.