Stablecoin issuer Circle seems set to deepen its function in decentralized finance by getting ready a local launch of USD Coin (USDC) on Hyperliquid’s Layer 1 chain, HyperEVM.
On Sept. 12, blockchain researcher MLM Blockchain flagged take a look at transactions involving USDC on HyperEVM’s mainnet, suggesting {that a} native deployment might roll out within the coming weeks.
Including to hypothesis, the identical pockets related to Circle just lately acquired about $5 million price of Hyperliquid’s HYPE token.
The acquisition strengthened the view that Circle is positioning itself extra deeply within the Hyperliquid ecosystem. If the launch goes dwell, HyperEVM would be a part of 24 different networks that already assist USDC, together with Ethereum, Solana, and the XRP Ledger.
Circle’s USDC is the second-largest stablecoin within the trade, with a market capitalization of greater than $72 billion. Hyperliquid, alternatively, is the dominant decentralized perpetual alternate, controlling greater than 60% of the market.
USDC state of affairs on Hyperliquid
The potential launch follows a public assertion from Circle CEO Jeremy Allaire, who wrote that the corporate intends to be “a significant participant and contributor” throughout the Hyperliquid ecosystem.
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In line with him:
“We’re coming to the HYPE ecosystem in a giant manner. We intend to be a significant participant and contributor to the ecosystem. Joyful to see others buy new USD tickers and compete Hyper quick native USDC with deep and almost immediate cross chain interoperability shall be nicely obtained.”
But Circle’s push comes as Hyperliquid prepares to introduce its native stablecoin, USDH. That mission has drawn consideration from main gamers comparable to Native Market, Paxos, OpenEden, and Agora, signaling an actual problem to Circle’s place.
Over the previous 12 months, Hyperliquid has relied closely on Circle’s stablecoin to energy its markets, with round $5.773 billion in USDC provide on the platform. That focus means Hyperliquid accounts for roughly 8% of all USDC in circulation, making it one in every of Circle’s most dominant chains, based on DeFiLlama knowledge.
So, ought to liquidity migrate to USDH, Circle might lose as a lot as $200 million in annual income, which could influence its enterprise.
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