Coinbase to Manage Hyperliquid's USDC Liquidity in On-Chain Expansion
Summary
- Coinbase said it will manage USDC liquidity for global DEX Hyperliquid through its AQA framework.
- Hyperliquid-based stablecoin USDH can be redeemed for USDC or fiat currency during the migration period, after which the service will be phased out.
- Coinbase said the partnership will expand its business across broader on-chain trading infrastructure and help build an integrated global market for on-chain capital markets.
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Coinbase Global Inc., the US cryptocurrency exchange, will manage Circle's USDC liquidity for global decentralized exchange Hyperliquid.
CoinDesk reported on May 14 that Coinbase had been selected as Hyperliquid's official Circle treasury manager.
Under the arrangement, Coinbase will manage USDC liquidity through Hyperliquid's AQA, or Aligned Quote Asset, framework. The system links stablecoin liquidity directly to Hyperliquid's trading infrastructure and shares part of reserve income with the protocol.
Native Markets, the developer of Hyperliquid-based stablecoin USDH, will also grant Coinbase the right to acquire USDH brand assets. During the migration period, USDH can be redeemed for USDC or fiat currency. The service will then be phased out in stages.
The partnership fits with Coinbase's broader expansion strategy. The company is moving beyond its centralized exchange business into the wider on-chain trading infrastructure market.
Coinbase said the partnership would allow investors to move between cryptocurrencies and fiat-based stablecoins without leaving blockchain-based platforms. It added that the deal would help build a more integrated global market for on-chain capital markets.
