Circle Internet Financial (CRCL), the firm behind the USDC stablecoin, has announced a significant investment in Hyperliquid (HYPE), a layer-1 blockchain that has experienced high demand this year.
Circle’s Strategic Move Into Hyperliquid
As part of this initiative, Circle has launched Native USDC and Cross-Chain Transfer Protocol (CCTP V2) on HyperEVM, an Ethereum Virtual Machine (EVM) integrated into Hyperliquid’s layer-1 blockchain.
This move is expected to streamline the adoption of USDC and enhance its utility. Plans also include enabling direct deposits and ensuring CCTP interoperability for Hyperliquid USDC on HyperCore, a platform that specializes in on-chain financial operations.
Circle’s announcement further revealed that it has become a direct stakeholder in Hyperliquid. The stablecoin issuer is also considering becoming a Hyperliquid validator, which would strengthen its position within the network.
Hyperliquid also boasts nearly $6 billion in USDC, which is a little over 8% of Circle’s total USDC supply. These deposits would reportedly generate approximately $250 million in annual interest for partners such as Circle and Coinbase (COIN). Jeremy Allaire, Circle’s CEO stated on X (formerly Twitter):
Don’t Believe the Hype. We are coming to the HYPE ecosystem in a big way. We intend to be a major player and contributor to the ecosystem. Happy to see others purchase new USD tickers and compete . Hyper fast native USDC with deep and nearly instant cross chain interoperability will be well received.
HYPE Token Hits New All-Time High
The blog post further asserted that the integration of Native USDC onto HyperEVM—and the upcoming support from HyperCore—promises to enhance the capital efficiency of transactions within the Hyperliquid ecosystem.
This initiative is said to allow developers and users to transact seamlessly across the crypto economy, making it easier for fintech firms and other service providers to leverage USDC.
Circle’s investment in Hyperliquid is just the beginning as the company plans to introduce incentive programs for builders working on HyperEVM, aiming to stimulate innovation and collaboration. The blog post concluded:
We’ve simply been blown away by the growth and success of Hyperliquid over the last year, and as we’ve gotten to know Jeff and team, and many of the major emerging builders in the ecosystem, it’s very clear that this is something incredibly unique and special. Circle is here. We’re investing. We’re thrilled to be supporting this incredible community.
According to CoinGeko data, HYPE has surpassed a market capitalization of $14 billion, surging over 1,500% since its inception and debut on December 1, 2024. As of this writing, the price of Hyperliquid’s native token has retraced toward $53 after reaching a new all-time high of $57 last Friday.
Circle’s stock, on the other hand, which recently debuted on the Nasdaq, is trading at $135 per share — a nearly 55% drop compared to its all-time high of over $298. However, relative to its IPO price of $64, the stock has gained 157%.
Featured image from DALL-E, chart from TradingView.com
