Circle Expands USDC on Hyperliquid Amid $5.5B AUM Surge and 83% Derivatives Market Share

Circle, the issuer of the USDC stablecoin, is expanding its presence in the decentralized finance (DeFi) space by launching native USDC and Cross-Chain Transfer Protocol (CCTP) V2 on Hyperliquid. This move comes as USDC inflows to Hyperliquid have surged by $1.2 billion in a single month, pushing its total assets under management (AUM) to over $5.5 billion [1]. The integration will allow for direct minting and redemption of USDC on Hyperliquid’s HyperEVM layer, enabling seamless capital movement across supported blockchains with 1:1 efficiency [1].

The decision underscores Circle’s strategic focus on platforms with high liquidity and transaction volumes. Hyperliquid has emerged as a key player in on-chain derivatives, processing $150 billion in monthly trading volume and holding an 83% share of decentralized perpetuals trading [1]. By supporting native USDC, Circle is positioning itself to align with where significant trading activity is occurring, reinforcing the principle that liquidity follows user activity.

The integration of native USDC eliminates the need for third-party bridges, reducing settlement delays and custodial risks. Traders and developers can now interact directly with USDC on Hyperliquid’s HyperEVM, enhancing settlement speed and transparency [1]. In a DeFi ecosystem where speed and security are paramount, the removal of intermediaries strengthens both trust and efficiency.

Moreover, the deployment of CCTP V2 enhances the utility of USDC by enabling cross-chain applications. Developers can now build tools that move USDC seamlessly between Hyperliquid and other chains without causing liquidity fragmentation [1]. This aligns with the broader trend of bridging DeFi ecosystems and creating a more interconnected financial infrastructure.

For Circle, the move to Hyperliquid is not just about expanding its footprint but also about reinforcing USDC’s role as the primary settlement currency in derivatives trading. As USDC becomes increasingly integrated into the infrastructure of major trading platforms, it solidifies the stablecoin’s position as a foundational asset in the DeFi space [1].

Source: [1] Circle chooses Hyperliquid as its next USDC stronghold amid $5.5b AUM boom (https://coinmarketcap.com/community/articles/688b76b6fa907f0ccca39c30/)