Coinbase strengthens USDC role in Hyperliquid ecosystem

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Coinbase strengthens USDC role

Highlights

Coinbase has become the official USDC deployer on Hyperliquid under the Aligned Quote Asset model.
USDH, issued by Native Markets, will gradually be phased out.
Users will be able to swap USDH for USDC or fiat without fees through the Native Markets dashboard.
The move strengthens USDC position in Hyperliquid trading infrastructure.

Hyperliquid changes its stablecoin strategy

According to The Block, Native Markets, the operator of USDH, agreed to grant Coinbase the right to acquire USDH brand assets. USDC has been the dominant stablecoin on Hyperliquid since the platform’s launch in 2023, while USDH was introduced later in 2025 through the AQA mechanism.

The stablecoin remains fully backed and supported for now. Native Markets said it will work with HIP-3 and HIP-1 developers to complete the migration to USDC before USDH support ends.

Over the coming months, users will be able to swap USDH for USDC or fiat without fees through the USDH dashboard on Native Markets. That should reduce the risk of a sudden liquidity break and give traders time to move settlement activity into USDC.

From native USDH to USDC liquidity

USDH was launched as Hyperliquid native stablecoin, designed to bring part of reserve-related revenue back into the ecosystem. Native Markets won the right to issue USDH through a competitive process among Hyperliquid ecosystem participants in 2025.

The model was closely tied to the Aligned Quote Asset framework. According to USDH materials, such assets can give traders benefits including lower taker fees and higher maker rebates on markets quoted in USDH.

But USDC had remained a core settlement asset on Hyperliquid since the platform's early growth. Circle previously launched native USDC and CCTP V2 on Hyperliquid, making it easier to move capital across networks and strengthening USDC's role in the ecosystem.

A bet on scale and trust

The decision matters beyond Coinbase and Hyperliquid. It shows that even large DeFi platforms seeking to build their own internal economies may choose more liquid and familiar stablecoins when it comes to scaling trading activity.

Hyperliquid remains one of the most prominent players in on-chain derivatives. Most of its revenue comes from perpetual futures fees, while the platform's quarterly gross revenue in 2025 and 2026 reached tens and hundreds of millions of dollars.

For traders, the move to USDC means clearer liquidity and fewer operational risks. For USDH, it effectively marks the end of a brief native stablecoin experiment that was meant to keep more of the Hyperliquid economy inside the platform but has now given way to the larger Coinbase and USDC infrastructure.

Earlier, we reported that an oil trader lost $17M on Hyperliquid after Trump's statements.

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