Hyperliquid is one of crypto’s fastest growing trading venues and the leading decentralized perpetual futures exchange. The platform handled more than $150 billion in trading volume in July alone, while its volume relative to Binance rose to 11.5%, underscoring its growing share of the derivatives market. USDC balances on Hyperliquid have grown to around $6 billion, making it an increasingly important distribution channel for the stablecoin.
Under the new arrangement, Coinbase will classify USDC on Hyperliquid as “on-platform”, collecting the income generated by reserves and paying 90% of it to Hyperliquid. JPMorgan estimated that Coinbase previously split nearly all revenue evenly with Circle.
The bank lowered earnings estimates for both companies, citing the Hyperliquid deal and weaker crypto markets, although it expects higher interest rates to provide some support for USDC-related revenues in the longer term.
The USDC has also lost momentum in recent months. Its circulating supply has fallen to about $73 billion from nearly $80 billion in March, part of a broader $10 billion curvature in the stablecoin market since May, as crypto trading activity cooled and new regulated rivals chipped away at the dominance of USDC and Tether’s USDT.
Japanese investment bank Mizuho said in a report last week that Circle’s final approval from the US Office of the Controller of the Currency to establish the First National Digital Currency Bank is a positive milestone, but investors may be overestimating its significance.
