Coinbase named USDC treasury deployer on Hyperliquid
Coinbase will manage USDC reserves for Hyperliquid as Native Markets phases out USDH; Circle will handle cross‑chain transfers using its CCTP.
On Thursday, Hyperliquid named Coinbase as the official USDC treasury deployer under a new framework called AQAv2. Circle will support cross‑chain movement of USDC through its Cross‑Chain Transfer Protocol (CCTP).
Under AQAv2, Coinbase will deploy USDC reserves on Hyperliquid and has secured the right to purchase USDH’s brand assets as Native Markets winds down the token. The framework requires staking of HYPE tokens to activate; Coinbase increased its staked HYPE position beyond the activation threshold.
AQAv2 designates USDC as the canonical quote asset for future markets under Hyperliquid’s HIP‑4 rules. The upgrade integrates yield‑sharing mechanics directly into USDC rather than routing those mechanics through a separate stablecoin.
USDC has been the dominant collateral on Hyperliquid since the platform launched in 2023. Supply on the network is about $5 billion, roughly double the level a year earlier, making Hyperliquid one of the largest concentrations of on‑chain dollar liquidity in derivatives trading.
The change creates a single stablecoin for major Hyperliquid markets and aims to deepen liquidity in USDC‑quoted pairs. The integration also gives users access to Coinbase’s fiat on‑ and off‑ramp services, while CCTP will enable native cross‑chain transfers to reduce friction for users moving assets between networks.
Native Markets will keep USDH markets operational during a multi‑month wind‑down. The USDH Dashboard will offer feeless conversions from USDH to USDC and provide fiat redemption options. Coinbase noted users will be able to redeem USDH for USDC or fiat without fees via the Dashboard over the coming months.
The Hyper Foundation is offering grants to eligible HIP‑3 and HIP‑1 deployers and to builders that integrated USDH to help cover migration costs.
Reserve yield that formerly flowed to external issuers will be redirected back to the Hyperliquid protocol. The protocol will use that revenue for HYPE token buybacks and to support its Assistance Fund. Because USDC supply on the platform is larger than USDH ever reached, the protocol projects a larger base for generating reserve yield under AQAv2.
Hyperliquid credited Native Markets for earlier work on onchain yield‑sharing, saying those technical learnings enabled AQAv2. Coinbase described the integration in a blog post as a step intended to concentrate liquidity with a broadly available, instantly transferable stablecoin.
Background: Native Markets launched USDH on Hyperliquid in September 2025 as a stablecoin that shared reserve yield directly with a protocol. The previous setup forced a choice between USDH, which carried yield‑sharing, and USDC, which carried deeper liquidity. AQAv2 merges the yield‑sharing model into a USDC‑based setup and sets conversion and redemption paths in place as Native Markets sunsets USDH.
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