Circle, the issuer of USDC, is deepening its involvement in the Hyperliquid ecosystem through strategic investment and the rollout of native USDC on the platform. This move comes as competition intensifies within Hyperliquid, particularly concerning stablecoins.

Circle's investment marks its first stake in HYPE tokens, Hyperliquid's native cryptocurrency. In addition to the investment, Circle is considering becoming a validator for the Hyperliquid network. This would allow Circle to participate directly in securing the blockchain, validating transactions, and influencing governance decisions.

The launch of native USDC on Hyperliquid's HyperEVM network is a key component of Circle's expansion. This integration allows developers, traders, and institutions to directly leverage USDC within the Hyperliquid ecosystem. The rollout also includes the integration of Circle's upgraded Cross-Chain Transfer Protocol (CCTP v2), facilitating seamless USDC transfers across more than a dozen supported networks. Direct deposits and CCTP interoperability for Hyperliquid USDC will roll out soon through HyperCore support.

Circle's initiatives aim to enhance network utility for digital dollars and improve on-chain capital efficiency. By establishing native USDC and CCTP V2 on HyperEVM, Circle is unlocking cross-chain liquidity for users and developers. The company emphasizes that Hyperliquid users will be able to move digital dollars seamlessly across supported chains.

This development follows Hyperliquid's recent competition to select a partner for its native stablecoin, USDH. Native Markets, a startup co-founded by an early Hyperliquid contributor, won the bid to manage Hyperliquid's USD reserves and issue USDH. Despite the upcoming launch of USDH, USDC will continue to be supported on Hyperliquid as long as it meets certain thresholds, including a 200,000 HYPE stake, a robust $1 peg mechanism, and minimum depth against USDC and HYPE.

Circle's CEO, Jeremy Allaire, has expressed the company's commitment to the Hyperliquid ecosystem. He stated that Circle intends to be a major player and contributor, emphasizing the company's "big tent" approach to Web3 development. Circle also plans to support HyperEVM and HIP-3 developers through incentive programs and new on-chain tools.

Hyperliquid has experienced significant growth, handling a substantial portion of Binance's trading volume and generating substantial weekly fees. The platform has become a leading venue for decentralized perpetual futures, capturing a large market share. As Hyperliquid's ecosystem expands, Circle's deeper commitment aims to foster greater interoperability and accessibility for USDC users.

Circle's investment in HYPE tokens and exploration of validator status indicate a strategic alignment with Hyperliquid's growth. By positioning USDC as a central settlement layer and engaging with Hyperliquid's builder community, Circle seeks to expand stablecoin adoption across decentralized finance. The company's actions reflect a broader trend among stablecoin issuers and crypto infrastructure providers to diversify their portfolios into high-utility tokens and support innovation within the blockchain space.