Overview
- Coinbase and Hyperliquid said Thursday that Coinbase will deploy and manage USDC as the network’s quote asset under an upgraded AQA v2 design.
- Native Markets granted Coinbase rights to purchase USDH brand assets, with USDH remaining redeemable for USDC or fiat during a managed sunset.
- Under AQA v2, Coinbase said the vast majority of interest earned on Hyperliquid’s USDC reserves will flow back to the protocol instead of outside issuers.
- USDC balances on Hyperliquid have roughly doubled year over year to about $5 billion, according to Coinbase.
- Coinbase shares fell about 2.8% to near $201 after the announcement, signaling investors have not yet priced in clear gains from deeper USDC use in on-chain trading.