Key Highlights:
- Stablecoin issuer Circle revealed integrating USDC on Hyperliquid.
- The firm also revealed investing in the HYPE token.
- The stablecoin company also promised providing support for developers of HyperEVM and HIP-3 protocols.
Circle has stated that it is widely integrating its US dollar stablecoin, USDC, into Hyperliquid and that it is extending liquidity and infrastructure support up to one of the fastest-growing blockchain ecosystems. The company affirmed that it deployed native USDC and Cross-Chain Transfer Protocol (CCTP) V2 on HyperEVM, and it has prospective connectivity to HyperCore.
“Today marks a major milestone in our expansion and engagement with the Hyperliquid ecosystem,” Circle wrote. The team added that the move would allow Hyperliquid developers and traders to transfer dollars without any hassle.
Simultaneously, Circle invested in HYPE, the native token of Hyperliquid, and it is considering the possibility of becoming a validator. It also promised specific support for developers of HyperEVM and HIP-3 protocols in new incentive programs. Hyperliquid recently revealed plans for USDH stablecoin and the collaboration with Circle could help in that initiative owing to the latter’s expertise and foothold in the sector.
USDC Liquidity and International Reach
Circle also pointed out that every new issuance of the USDC enjoys the already existing liquidity pools and integrations of the crypto economy. “Every new USDC in circulation inherits from this global liquidity and platform utility; every new developer that integrates a product, protocol or service, expands the utility for every other developer,” the stablecoin issuer noted.
In the last eight years, Circle has established USDC as a common settlement layer. The firm has reported that over $40 trillion on-chain transact with USDC have been supported by a system of global minting and redemption. The firm also claimed to have issued and redeemed more than 1 trillion USDC since its launch, and it has never reduced the redemption ratio to less than 1: 1 to the U.S. dollar.
This liquidity is supported by the institutional relationships with banks and market makers in the U.S, U.K, European Union, Singapore, Hong Kong and Brazil and soon the United Arab Emirates. The company called this infrastructure a “digital dollar dial tone” which will enable institutions and payment firms to “seamlessly create and redeem USDC at par globally.”
On the secondary liquidity, Circle added, it has increased accordingly. USDC is now trading at an extreme against major cryptocurrencies on major exchanges. The company indicated that BTC/USDC spreads at Binance have recently been equalized with USDT markets and spot spreads are within 0.2 basis points and perpetuals are within 0.1 basis points.
Cross-Chain Connectivity
Along with liquidity, Circle was also able to boast years of interoperability protocols like CCTP and Circle Gateway. They are created to ensure that USDC can be transferred between chains as media services are passed through different platforms. “Just as Spotify and Netflix ensure that their media can play everywhere, Circle is committed to building a platform where our stablecoins can effectively ‘play everywhere’ too,” the firm stated.
By making Hyperliquid a part of this framework, Circle claims that users can now transfer digital dollars across HyperEVM and HyperCore, as well as other networks that it supports. The company is of the opinion that it will make cross-platform activity easier to developers, fintechs and on/off-ramp providers.
Increasing Position in Hyperliquid
This is not just technical integration by Circle, but its most recent investment. It is also becoming a stakeholder in governance and growth of the ecosystem of Hyperliquid. Circle is now a direct investor in HYPE. “Circle has become a direct stakeholder in HYPE. This is a start, and we will iterate based on mutual win-win principles for Hyperliquid and USDC,” the blog post mentioned.
Besides this, Circle is also introducing initiatives to assist builders and start-ups that grow in the environment of Hyperliquid. The company stated that it plans to invest in tooling and protocol development, making USDC the future core liquidity layer of Hyperliquid.
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