Hyperliquide is one of the fastest growing cryptocurrency trading platforms and the leading decentralized and perpetual futures exchange. The platform processed over $150 billion in trading volume in July alone, while its volume relative to Binance soared to 11.5%, highlighting its growing share in the derivatives market. USDC balances on Hyperliquid have reached approximately $6 billion, making it an increasingly important distribution channel for the stablecoin.
Under the new arrangement, Coinbase will classify USDC on Hyperliquide as “on-platform,” collecting revenue generated from reserves and paying 90% of it to Hyperliquide. JPMorgan estimates that Coinbase previously shared almost all revenue equally with Circle.
The bank cut its earnings estimates for both companies, citing the Hyperliquid deal and weakness in crypto markets, although it expects higher interest rates to support USDC-linked revenues to some extent in the long term.
USDC has also lost momentum in recent months. Its circulating supply fell to about $73 billion, from nearly $80 billion in March, part of a broader $10 billion contraction in the stablecoin market since May, as cryptocurrency trading activity cooled and new regulated rivals eroded the dominance of Tether’s USDC and USDT.
Japanese investment bank Mizuho said in a report last week that the final approval of Circle by the U.S. Office of the Comptroller of the Currency to create the first national digital currency bank is a positive step, but investors may be overestimating its importance.
