Coinbase Deepens Hyperliquid Ties as USDH Stablecoin Faces Gradual Exit

• Coinbase strengthens Hyperliquid partnership while USDH stablecoin gradually exits ecosystem operations.
• Hyperliquid captures massive blockchain fee market share through perpetual trading growth.
• Institutional interest increases as 21Shares launches Hyperliquid HYPE exchange-traded fund.

Coinbase has expanded its involvement within Hyperliquid by becoming the platform’s official treasury deployer for USDC under the aligned quote asset framework, while Hyperliquid’s native stablecoin USDH has officially entered a gradual phase-out process across the ecosystem.

According to Coinbase, Native Markets operator Hyperliquid’s stablecoin USDH agreed to grant the exchange rights to purchase USDH brand assets as the transition moves forward, while the company also confirmed that USDC had already established itself as the dominant stablecoin on Hyperliquid before the latest agreement emerged.

Moreover, the latest agreement places USDC at the center of one of crypto’s fastest-growing trading ecosystems, which continues attracting traders because of its Layer 1 infrastructure and expanding derivatives liquidity.

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Hyperliquid Expands While USDH Moves Toward Sunset

Coinbase confirmed that users will continue redeeming USDH for either fiat currencies or USDC without paying fees during the migration period, while Native Markets assured users that USDH remains fully backed despite the planned sunset process already beginning across the ecosystem. Additionally, Native Markets explained that it plans to coordinate closely with HIP-1 and HIP-3 deployers before fully removing USDH from the ecosystem, because the company wants to avoid disruptions across Hyperliquid’s increasingly active derivatives market.

The stablecoin transition arrives while Hyperliquid continues recording rapid expansion across decentralized trading markets, particularly as more traders move toward on-chain perpetual futures platforms instead of centralized alternatives. Data referenced in the report showed that Hyperliquid now controls nearly 40% of blockchain fee market share across major crypto networks, placing the platform ahead of Ethereum, Solana, and Tron in fee generation connected to trading activity.

Most of those fees reportedly come from perpetual futures trading activity, where users continue paying network fees while opening, maintaining, and closing leveraged trading positions on the platform. Hyperliquid’s rapid expansion since launching in November 2024 has also strengthened the importance of stablecoin liquidity within the ecosystem, particularly as derivatives traders continue demanding deeper liquidity and faster execution speeds.

Institutional Interest Around Hyperliquid Increases

Institutional attention surrounding Hyperliquid has continued increasing in recent weeks, with asset managers and market participants showing stronger interest in the platform’s growing role within decentralized derivatives markets. Earlier this week, asset manager 21Shares launched the first exchange-traded fund tied to Hyperliquid’s native token HYPE, reflecting broader recognition of the platform’s expanding position within the digital asset industry.

Coinbase’s deeper involvement may further strengthen USDC’s integration within decentralized derivatives markets, while also increasing Hyperliquid’s dependence on USDC liquidity as trading activity continues growing over the coming months. Coinbase’s latest partnership represents another major shift within Hyperliquid’s stablecoin structure, while USDH’s gradual removal appears set to strengthen USDC’s role as the platform’s primary liquidity asset moving forward.

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