Hyperliquid is one of the fastest growing cryptocurrency trading hubs and the leading decentralized perpetual futures market. The platform processed over $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 approximately $6 billion, making it an increasingly important distribution channel for the stablecoin.
Under the new agreement, Coinbase will classify the USDC on Hyperliquid as “on-platform,” collecting the revenue generated by reserves and paying 90% of it to Hyperliquid. JPMorgan estimated that Coinbase previously split almost all revenue equally with Circle.
The bank cut earnings estimates for both companies, citing the Hyperliquid deal and weaker crypto markets, although it expects higher interest rates to provide some support to USDC-related revenues in the long term.
USDC has also lost momentum in recent months. Its circulating supply has fallen to around $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 undermined Tether’s USDC and USDT dominance.
Japanese investment bank Mizuho said in a report last week that Circle’s final approval by the U.S. Office of the Comptroller of the Currency to establish the First National Digital Currency Bank is a positive milestone, but investors may be overestimating its importance.
