Stablecoin issuer strengthens position as DeFi competition intensifies
Circle, the company behind USD Coin (USDC), has expanded its footprint in decentralized finance with a direct investment in Hyperliquid and the launch of native USDC on the protocol. The move comes as competition among stablecoin issuers on Hyperliquid heats up, following the network’s plans to launch its own native dollar-pegged token.
Circle Becomes a Hyperliquid Stakeholder
In its latest announcement, Circle confirmed it now holds Hyperliquid’s native cryptocurrency, HYPE, and is also considering becoming a network validator. Validators on Hyperliquid are HYPE stakers who secure the blockchain and participate in governance.
Circle stated on X that the integration marks “the first step toward enabling USDC deposits into Hyperliquid’s spot and perpetuals exchange on HyperCore,” the network’s trading layer.
A company spokesperson added, “Today’s launch is simply delivering on the roadmap we announced earlier this year.”
Hyperliquid’s Growing Ecosystem
Hyperliquid has positioned itself as a derivatives-focused DeFi ecosystem, reaching $330 billion in trading volume within a year of launching its Layer-1 chain. Currently, around 430 million HYPE tokens are staked across the network, with top validators including Galaxy Digital, Flowdex, and the Hyper Foundation.
The protocol’s governance community recently selected Native Markets to issue USDH, Hyperliquid’s upcoming native stablecoin. The decision followed a competitive bidding process that attracted interest from issuers like Paxos, Frax, Ethena, OpenEden, and BitGo.
Stablecoin Competition Intensifies
While USDH is set to become Hyperliquid’s primary stablecoin, Circle’s decision to deploy native USDC on HyperEVM — the network’s smart contract layer — signals a strategic push to remain a dominant player in DeFi.
By holding HYPE and exploring validator participation, Circle is not only embedding itself deeper into the Hyperliquid ecosystem but also positioning USDC as a core settlement currency within its trading infrastructure.
DeFi Momentum in 2025
The announcement comes amid renewed momentum in decentralized finance. According to DefiLlama, the total value locked (TVL) across all protocols has surged to $158 billion, up 35% since December. Alongside stablecoins, sectors like real-world asset tokenization and memecoin trading are driving activity, with platforms such as Pump.fun recently surpassing $1 billion in daily volume.
Circle’s expansion into Hyperliquid underscores the company’s bid to remain at the center of the evolving DeFi economy. With native USDC live, a potential validator role on the horizon, and Hyperliquid preparing to launch USDH, competition among stablecoins on the network is set to accelerate in the coming months.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.