Coinbase will serve as Hyperliquid’s USDC treasury deployer as the platform phases out native USDH and expands stablecoin infrastructure.
Author: Arushi Garg
14th May 2026 – Coinbase and Hyperliquid announced today that Coinbase will serve as the official USDC treasury deployer on Hyperliquid under a new framework called Aligned Quote Asset v2 (AQAv2).
High Signal Summary For A Quick Glance
Henry
@lane_starling
@coinbase @HyperliquidX Additional USD $150-$175M annual revenue for $HYPE. There is $5bn of USDC on Hyperliquid, interest rates are 3.5-3.75%. (Under AQAv2, stablecoin deployers share approximately 90% of cost-adjusted reserve yield revenue on their Hyperliquid supply with the protocol.) Excellent
Today we’re expanding our support for @HyperliquidX by becoming the platform’s official treasury deployer of USDC. Onchain markets operate 24/7 and require collateral that is always available, instantly transferable, and deeply liquid - USDC delivers exactly that. Alongside https://t.co/ki7QmSJVdH
12:35 PM·May 14, 2026
x256.hl
@x256xx
@coinbase @HyperliquidX This might have been the best financial decision you guys made so far. Hyperliquid
Today we’re expanding our support for @HyperliquidX by becoming the platform’s official treasury deployer of USDC. Onchain markets operate 24/7 and require collateral that is always available, instantly transferable, and deeply liquid - USDC delivers exactly that. Alongside https://t.co/ki7QmSJVdH
12:21 PM·May 14, 2026
Richard Seiler
@richardseiler
@coinbase @HyperliquidX This is a pretty cool arrangement
Today we’re expanding our support for @HyperliquidX by becoming the platform’s official treasury deployer of USDC. Onchain markets operate 24/7 and require collateral that is always available, instantly transferable, and deeply liquid - USDC delivers exactly that. Alongside https://t.co/ki7QmSJVdH
12:05 PM·May 14, 2026
The deal means Coinbase will share the “vast majority” of USDC reserve yield revenue directly with the Hyperliquid protocol. As part of the arrangement, Native Markets agreed to sell the USDH brand assets to Coinbase. USDH, Hyperliquid’s native stablecoin, will sunset gradually.
Under AQAv2, Coinbase takes on the aligned treasury role for USDC on Hyperliquid. This enables deep protocol-level integration and yield-sharing between the two platforms.
Circle continues to handle the technical side. It manages CCTP and the native cross-chain infrastructure that makes USDC work on HyperCore and HyperEVM.
Both Coinbase and Circle committed to staking additional HYPE tokens to activate the AQAv2 framework. In a future network upgrade, USDC will become the canonical quote asset for all HIP-4 markets on Hyperliquid.
Coinbase said in its announcement: “Onchain markets operate 24/7 and require collateral that is always available, instantly transferable, and deeply liquid. USDC delivers exactly that.”
Timeline: Hyperliquid’s move from USDH launch to USDC treasury deployment and stablecoin transition
Hyperliquid announces plans to launch its native stablecoin USDH through a competitive governance process and opens issuer proposals.
USDH officially launches on Hyperliquid after Native Markets wins the validator vote, with early trading volume exceeding $2 million.
Hyperliquid repeatedly captures major blockchain fee-share records, frequently accounting for roughly 35–43% of total blockchain fee revenue.
Coinbase becomes Hyperliquid’s official USDC treasury deployer and Aligned Quote Asset partner as USDC replaces USDH as primary collateral.
USDH is expected to phase out over time, with users able to redeem into USDC or fiat while Native Markets supports the full migration process.
Native Markets launched USDH around September 2025 after winning a competitive bidding process through Hyperliquid’s validator governance vote. The stablecoin was designed to capture reserve yield and share it with the protocol through HYPE buybacks and the Assistance Fund.
That model now transitions to Coinbase. According to Hyperliquid’s official announcement, “the pioneering work of Native Markets in launching USDH made AQAv2 possible.” The learnings and mechanics from USDH will live on in the new framework.
USDH markets remain fully functional during the transition. Holders can convert USDH to USDC without fees. Fiat redemptions through Native Markets are also available. The Hyper Foundation is issuing grants to HIP-3 and HIP-1 deployers, along with USDH-integrated builders, to support migration.
No hard cutoff date has been announced for the USDH sunset.
Hyperliquid has historically relied on bridged USDC for roughly 95% of its collateral, according to on-chain data. The platform holds an estimated $5-6 billion in total value locked.
Before USDH, the protocol had no mechanism to capture reserve yield from its dominant stablecoin. USDH changed that by keeping yield in-house. Now, AQAv2 achieves a similar outcome through Coinbase, but with the deeper liquidity and infrastructure that USDC already commands.
Hyperliquid also dominates decentralized perpetuals trading. It generates a significant share of on-chain fee revenue, with community estimates placing that figure at roughly 40% of all blockchain fees.
HYPE token saw immediate positive price action following the announcement. The move was noted across trading communities on X, though no full 24-hour close is available yet.
On-chain, USDH supply shows no material drawdown so far. The USDH/USDC spot pair continues to trade near $1.00 with active volume. The USDH contract sits at 0x111111a1a0667d36bd57c0a9f569b98057111111 on HyperEVM.
Secondary coverage from Wu Blockchain, Coin Edition, and other crypto outlets confirmed the facts without any conflicting accounts.
How Hyperliquid’s shift from USDH to Coinbase-deployed USDC changes liquidity, trust, and ecosystem control
The dominant sentiment on X is bullish. Retail traders and key opinion leaders highlighted deeper USDC liquidity, yield alignment, and HYPE token upside as key positives.
Some community members raised concerns about increased centralization risk. USDH was originally meant to give Hyperliquid sovereign control over its stablecoin economics. Selling the brand to Coinbase moves in the opposite direction.
That said, the centralization critique remains a minority view so far. Most commenters see the deal as a net positive for the protocol’s liquidity and long-term positioning.
Several details remain unknown. The exact percentage of yield Coinbase will share has not been disclosed. The AQAv2 activation date and specific network upgrade timeline are also pending.
The USDH sunset will happen gradually, with no fixed deadline. Holders should monitor Hyperliquid’s announcements page for migration updates.
For now, this deal positions Coinbase and Hyperliquid for one of the deepest CeFi-DeFi integrations in the market. The question is whether the yield-sharing economics of AQAv2 will deliver more value to the protocol than the original USDH model.
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