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Circle is making a strategic bet on Hyperliquid as the chain’s assets under management surge to $5.5 billion. The arrival of native USDC and CCTP V2 could accelerate its dominance in DeFi’s stablecoin market.
Summary
- Circle will deploy native USDC and CCTP V2 on Hyperliquid following a $1.2B USDC inflow.
- Native USDC issuance eliminates third-party bridge risk and enables direct redemption.
- Native USDC eliminates bridge risk and enhances settlement speed, positioning Circle at the center of Hyperliquid’s growing DeFi ecosystem.
According to a press release dated July 31, Circle will deploy native USDC and its Cross-Chain Transfer Protocol V2 on Hyperliquid, marking a pivotal expansion for the stablecoin issuer.
The integration will allow direct minting and redemption of USDC via Circle Mint on Hyperliquid’s HyperEVM layer and enable seamless capital movement between supported blockchains with 1:1 efficiency, Circle said in the statement.
The deployment follows a surge of USDC inflows to the platform, which has added approximately $1.2 billion in the past month alone, pushing its total AUM north of $5.5 billion, Dune Analytics data shows.
Why Hyperliquid became Circle’s next strategic play
Circle’s decision to bring native USDC to Hyperliquid reflects the migration of real trading volume. Hyperliquid has quietly become the backbone of on-chain derivatives, processing $150 billion in monthly volume while commanding an 83% share of decentralized perpetuals trading.
For Circle, this reinforces the principle that liquidity follows activity. By enabling direct minting and redemptions through Circle Mint (for institutions) and deploying CCTP V2, Circle is positioning itself where traders are already settling in significant volume.
The mechanics are critical. Unlike bridged or wrapped alternatives, native USDC on Hyperliquid’s HyperEVM allows traders and developers to interact with the actual asset, eliminating third-party custodians and mitigating redemption delays.
That’s vital for a platform where USDC functions not only as collateral but also as the primary settlement currency for billions in derivatives trades. CCTP V2 enhances this utility further by allowing developers to build cross-chain applications that move USDC between Hyperliquid and other chains without liquidity fragmentation.
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