Coinbase to Boost USDC on Hyperliquid as USDH Phases Out

Strengthening Trust Through Established Stablecoins

Coinbase has been named the official USDC treasury deployer on Hyperliquid, a decentralized derivatives exchange. The move, announced this week, aims to expand USDC’s presence in decentralized finance. It coincides with Native Markets stepping back from its USDH stablecoin.

The partnership positions Coinbase as a key infrastructure provider for Hyperliquid’s treasury operations. By deploying USDC—the dollar-backed stablecoin co-founded by Circle—Coinbase will help strengthen liquidity and stability on the platform. This shift comes as Native Markets begins winding down USDH, its native stablecoin, marking a strategic pivot away from maintaining a proprietary digital dollar. Hyperliquid cited efficiency and alignment with broader market standards as reasons for the transition.

Hyperliquid’s decision to adopt USDC reflects a growing industry preference for regulated, transparent stablecoins. USDC is fully backed by cash and short-duration U. S. Treasury securities, audited monthly, and operates under strict regulatory oversight. In contrast, USDH, while functional, lacked the same level of institutional recognition.

Coinbase’s role includes managing treasury deployments and ensuring seamless integration of USDC within Hyperliquid’s ecosystem. This includes supporting trading pairs, margin functions, and settlement operations. The exchange’s infrastructure will help Hyperliquid reduce complexity while improving capital efficiency.

Why Phase Out USDH Now?

„Bringing USDC into Hyperliquid’s core operations is a step toward greater reliability,” a platform spokesperson said. „Coinbase’s proven custody and deployment systems make them the right partner for this phase.”

Native Markets’ move to sunset USDH signals a broader reassessment of niche stablecoins in competitive DeFi environments. Smaller issuers often struggle with adoption, regulatory compliance, and liquidity depth compared to dominant players like Circle and Tether.

With USDC already circulating across dozens of blockchains and integrated into major trading platforms, its network effect gives it a clear edge. For Hyperliquid, relying on USDC reduces operational risk and appeals to institutional users who demand compliance and transparency.

Frequently Asked Questions

The sunset of USDH will be gradual, allowing users to swap holdings and adjust positions. No losses are expected, as the transition is fully backed and coordinated.

Why is Hyperliquid switching from USDH to USDC? Hyperliquid is adopting USDC for its stronger regulatory standing, wider adoption, and audit transparency. USDC offers better liquidity and trust compared to the smaller, less-established USDH.

What happens to existing USDH holders? Users can exchange USDH for USDC or withdraw funds during the phased transition. Native Markets will ensure full backing and support throughout the process.

Does this mean Coinbase is entering DeFi more deeply? While Coinbase isn’t launching new products here, its role as treasury deployer strengthens its presence in decentralized finance, particularly in infrastructure and stablecoin services.