Circle Expands DeFi Reach via Hyperliquid Integration as Platform Surpasses $5.5B AUM

Circle, the issuer of the widely-used USDC stablecoin, has announced a strategic expansion into the Hyperliquid ecosystem, a leading decentralized derivatives trading platform. The integration involves deploying native USDC and the Cross-Chain Transfer Protocol Version 2 (CCTP V2) on Hyperliquid’s HyperEVM, aiming to strengthen Circle’s presence in the decentralized finance (DeFi) space. This follows a significant $1.2 billion USDC inflow to the platform within a single month, pushing Hyperliquid’s total assets under management (AUM) beyond $5.5 billion [1].

The move allows for direct minting and redemption of USDC via Circle Mint for institutional and retail users. Unlike bridged or wrapped assets that require third-party custodians, native USDC offers a trust-minimized, bridge-free experience, reducing settlement delays and enhancing security for traders [1]. For Hyperliquid, where USDC serves as the primary settlement currency across billions of dollars in on-chain derivatives trades, the integration ensures faster and more efficient transactions, bolstering the platform’s DeFi infrastructure [1].

Hyperliquid has emerged as a dominant player in decentralized perpetuals trading, commanding an estimated 83% market share and processing over $150 billion in monthly trading volume. By embedding itself into this high-activity ecosystem, Circle is aligning with a platform where liquidity is concentrated, and real-time trading is active. The decision signals Circle’s recognition of Hyperliquid’s potential as a DeFi hub, leveraging the platform’s sustained volume to position USDC at the center of institutional and retail transactions [1].

In tandem with native USDC, the deployment of CCTP V2 facilitates seamless, 1:1 capital transfers between Hyperliquid and other compatible blockchains. This cross-chain interoperability helps mitigate liquidity fragmentation and supports the development of DeFi applications across ecosystems while maintaining USDC’s stable 1:1 peg [1]. The protocol enhances composability, offering developers and institutions a more flexible and efficient stablecoin experience in the multi-chain DeFi landscape.

By securing a direct presence in Hyperliquid, Circle is not just expanding its reach but also reinforcing its leadership in the stablecoin space. As the platform’s AUM and trading activity continue to grow, Circle’s early and strategic involvement positions USDC as the preferred stablecoin for next-generation decentralized finance [1].

Source: [1] Circle Taps Hyperliquid as New Stronghold in $5.5B DeFi Surge (https://coinmarketcap.com/community/articles/688b84c3680c444f8ca7e982/)