Hyperliquid Formally Phases Out Native Stablecoin USDH as Circle Stakes HYPE to Become Validator
Hyperliquid introduced its native stablecoin USDH in an effort to reduce its reliance on Circle-issued USDC and retain stablecoin revenue within its ecosystem. However, USDC has long dominated trading and liquidity on the platform, where a unified quote asset is critical to market depth and capital efficiency.
In July 2026, Hyperliquid announced that it would formally phase out USDH and restore USDC as its sole official quote asset. At the same time, Circle staked 500,000 HYPE tokens as it prepared to join the validator set, extending the partnership from stablecoin liquidity to network infrastructure and governance security.
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The history behind this eventCoinbase Backs Hyperliquid Stablecoin Push, Deepening DeFi Presence
Hyperliquid is a DeFi platform centered on onchain perpetual futures trading, with stablecoins underpinning its pricing, settlement and liquidity. By supporting USDC as the official quote asset, Coinbase can deepen its onchain trading presence and strengthen the market influence of the stablecoin issued with Circle.
As of July 19, 2026, Coinbase will serve as the official treasury deployer for USDC on Hyperliquid and manage its liquidity, while USDC will replace USDH. The supply of USDC on Hyperliquid's blockchain has approached $5 billion. The partnership could also boost demand for HYPE but put pressure on Coinbase's and Circle's profit margins.
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