USDC Issuer Circle Takes Stake in Hyperliquid with First HYPE Token Investments

Circle, the issuer of USD Coin (USDC), has expanded its presence in decentralized finance by investing directly in Hyperliquid’s ecosystem, marking its first stake in HYPE tokens.

The move comes alongside the official launch of native USDC and the Cross-Chain Transfer Protocol (CCTP) V2 on Hyperliquid, positioning the stablecoin at the center of one of DeFi’s fastest-growing platforms.

Circle Boosts USDC Liquidity on Hyperliquid, Eyes Validator Role

According to Circle, USDC will be deployed on HyperEVM, Hyperliquid’s smart contract layer, allowing deposits across HyperCore and any application built on the network.

The rollout will also bring CCTP V2 interoperability, allowing users to move USDC between Hyperliquid and other supported blockchains with full capital efficiency.

In July, Circle announced that its native USDC and Cross-Chain Transfer Protocol (CCTP) V2 would soon launch on Hyperliquid, a trading platform designed for decentralized finance.

Circle emphasized that USDC issued on Hyperliquid will remain fully reserved and redeemable 1:1 for U.S. dollars, while also benefiting from institutional on- and off-ramps like Circle Mint.

The integration came at a time when Hyperliquid emerged as a leading hub for stablecoin liquidity. The platform’s assets under management (AUM) recently surpassed $5.5 billion, up from under $4 billion earlier in July.

Circle attributed $1.2 billion of that growth to fresh USDC inflows, showing the stablecoin’s increasing role in Hyperliquid’s trading environment.

Hyperliquid has also captured 70% of USDC’s liquidity share on Arbitrum, indicating the platform’s growing dominance in stablecoin trading.

Circle said its new position as a HYPE token holder is part of a broader plan to engage with Hyperliquid’s builder community, including support for HIP-3 and HyperEVM developers.

The company also noted that it is evaluating the possibility of becoming a Hyperliquid validator, further strengthening its role in the ecosystem.

For traders and developers, the addition of native USDC is expected to expand use cases across the platform.

USDC can now be used as collateral for perpetual contracts, serve as the quote asset for spot pairs, or be integrated into HyperEVM applications such as treasury management tools, payment systems, and other financial products.

CCTP V2’s interoperability will also allow capital-efficient onboarding, token swaps, and portfolio rebalancing across chains.

Circle Calls Hyperliquid ‘One of Crypto’s Most Impressive Communities’

Circle pointed out that the integration builds on nearly eight years of work to establish USDC as a global digital dollar standard.

Since launch, USDC has supported nearly $40 trillion in on-chain transactions, with over $1 trillion minted and redeemed to date.

Circle also pointed to its regulated infrastructure and banking relationships across major markets, including the U.S., the UK, the EU, Singapore, Hong Kong, Brazil, Japan, and soon the UAE, as the backbone of USDC’s primary liquidity.

The expansion into Hyperliquid comes as the decentralized exchange continues to post record numbers.

In August, Hyperliquid generated $106 million in revenue from perpetual futures trading, a 23% increase from July’s $86.6 million.

According to data from DefiLlama, the platform also processed $383 billion in monthly trading volume at the time, with annualized revenue reaching $1.25 billion.

Circle described Hyperliquid as one of the most impressive communities in crypto, showing its decision to invest directly and provide deeper support.

With USDC now embedded into Hyperliquid’s core infrastructure, both firms see the move as a step toward scaling stablecoin adoption across decentralized finance.

Stablecoin Market Approaches $300B Amid Record Growth and Fragmentation

Stablecoins have become one of the defining crypto trends of 2025, gaining traction as the Trump administration pushes to promote them through measures such as the GENIUS Act, passed in July, intended to strengthen the U.S. dollar.

The sector, which surpassed $200 billion in late 2024, is now nearing a $300 billion market capitalization, though estimates vary.

CoinMarketCap recently reported $300 billion, while CoinGecko placed the figure at $291 billion and DeFiLlama at $289 billion, reflecting differences in tracking methodologies.

July marked a major milestone, with total stablecoin capitalization hitting an all-time high of $261 billion, extending a 22-month growth streak.

Trading volumes also surged, with centralized exchange stablecoin pairs recording $1.6 trillion in July. Tether (USDT) retained its lead, climbing 3.6% to $164 billion, though its dominance dipped slightly.

USD Coin (USDC) rose 3.8% to $63.6 billion, while Ethena’s USDe surged 43.5% to $7.6 billion despite falling staking yields.

Falcon Finance’s USDf posted the sharpest gains, up 121% to $1.07 billion, while BlackRock’s BUIDL and First Digital Labs’ FDUSD recorded steep declines.

New data from Bridge shows that stablecoin transactions exceeded $2.5 trillion in recent months, while Chainalysis found that USDT consistently processed over $1 trillion per month from mid-2024 to mid-2025.

In addition, USDC handled up to $3.3 trillion during peak months, showing its growing role in regulated corridors.

Analysts note that while USDT dominates emerging markets as digital cash, USDC and smaller stablecoins such as EURC and PYUSD are gaining ground, pointing to a more fragmented but rapidly expanding sector.