Circle has announced a strategic partnership with Hyperliquid, introducing its stablecoin USDC to Hyperliquid’s high-performance blockchain ecosystem. The collaboration is expected to streamline stablecoin transfers across multiple chains, leveraging Circle’s Cross-Chain Transfer Protocol (CCTP v2).
In a recent blog post, Circle revealed that native USDC will soon go live on Hyperliquid. By integrating CCTP v2, the deployment aims to facilitate seamless and efficient movement of USDC across supported blockchains.
The integration boosts ecosystem growth, with Hyperliquid’s assets under management (AUM) surging to $5.5 billion in July. The partnership underscores the rising demand for interoperable, high-speed DeFi infrastructure.
The partnership has also made developers’ work easier. When transferring Circle’s native USDC, Hyperliquid users will not use wrapped tokens and centralized bridges, as they are long processes. Instead, they will use CCTP v2’s streamlined transfer system in activities such as design applications for cross-chain integration, swaps, and treasury rebalancing.
Circle initiates several partnerships to integrate its USDC
In its official announcement, Circle brought up the advantages of its USDC to Hyperliquid users. According to the announcement, the token can be used as collateral in two scenarios: when it comes to trading open-ended contracts and as a quote asset for spot pairs.
The stablecoin issuer, however, did not disclose the exact date of the launch of its USDC on Hyperliquid’s blockchain system. Analysts have anticipated this could be due to a delay in releasing the mainnet and testnet addresses.
Even so, the partnership has contributed to the surge in price for HYPE. The native token of Hyperliquid decentralized exchange (DEX) experienced a 3% increase, according to data from CoinMarketCap in the last 24 hours.
Meanwhile, it is worth noting that this is not the first partnership Circle has initiated. Since last month, the firm has established several partnerships to integrate its USDC. For example, in the middle of July, Circle collaborated with Ant Group. The other partnership was between the stablecoin issuer and Sam Altman’s World Chain.
At this time, Circle integrated its USDC with its Cross-Chain Transfer Protocol and launched the stablecoin on the XRP Ledger. On the other hand, Circle’s USDC launch on Hyperliquid is predicted to be unique compared to other launches, as research from reliable sources reveals that 70% of the stablecoins are already available on Hyperliquid’s system, but on the Arbitrum network.
Because USDC is not directly available on Hyperliquid, traders must follow a certain path to acquire a smooth transfer process. They will trade on DEX and transfer their stablecoins through the Arbitrum network. As the number of traders adopting this system increases, the total amount of Arbitrum USDC has surged to $5.5 billion from $4 billion, with stablecoins on DEX increasing by approximately $1.2 billion.
Circle chooses Hyperliquid for its unique features
Like Circle, Hyperliquid has been engaged in several activities since last month. The decentralized exchange increased its focus on the crypto ecosystems, majoring in stablecoin and Solana partnerships. To support this claim, it partnered with Phantom, enabling its users to trade cryptocurrencies with leverage right from their wallets. It expanded its reach in the Solana space as it expanded its reach in the stablecoin space in partnership with Circle.
When asked why it chose Hyperliquid, Circle responded that the decentralized exchange was one of the powerful blockchain systems known for decentralized finance.
Moreover, it pointed out that the Hyperliquid system applies two features essential in streamlining its stablecoin. This includes: HyperCore, which encompasses swift native features like an order book decentralized exchange (DEX), and HyperEVM, which enables general-purpose smart contracts to access the abundant liquidity provided by HyperCore.
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