Decentralized trading platform Hyperliquid initiated a major restructuring of its liquidity and reserve model with record transfers of approximately $4.4 billion in USDC. This move, announced by Coinbase on June 12, 2026, will officially activate the Aligned Quote Asset v2 (AQAv2) framework, making the stablecoin issued by Circle the primary reference asset within the ecosystem.
The funds were transferred by Circle to an address controlled by Coinbase on HyperEVM, Hyperliquid’s smart contract layer. As Coinbase explained, this is the largest USDC transfer ever recorded.
The operation embodies an agreement announced several weeks ago between Coinbase, Circle, and Hyperliquid. Under this system, Coinbase assumes role of official USDC financial manager on networkMeanwhile, Circle will continue to handle issuance, redemption, and cross-network transfers through Cross-Chain Transfer Protocol (CCTP).
The new model aims to integrate USDC as the protocol’s primary trading and liquidity asset. As part of that transition, Hyperliquid will gradually replace USDH. A stablecoin developed within its own ecosystem. In this sense, a migration mechanism has been defined for users who currently own assets, which is described as a fluid and non-disruptive process. Both Native Markets and Coinbase have ensured that USDH will always maintain full support. Similarly, users can exchange their tokens for USDC through the official panel available on USDH.com.
As reported by CriptoNoticias, AQAv2 also changes how the revenue generated by the reserves supporting USDC is distributed. According to disclosed information, most of these proceeds will go to Hyperliquid. Profitability is estimated at nearly 4% per year, and various estimates place these revenues at between $140 million and $200 million per year.
A portion of these resources will be allocated to repurchase Hyperliquid’s native token, HYPE. This mechanism aims to create a regular source of demand for assets while strengthening the economic incentives for the protocol.
Are big companies replacing native efforts?
But this transition is not without its questions. Some ecosystem participants believe that replacing USDH with USDC will increase reliance on stablecoins issued by centralized organizations. Some say the agreement will give Coinbase and Circle more influence over infrastructure that has traditionally opted for more native solutions.
Trader Akira Noma quipped in X magazine that after months of defending the superiority of USDH over USDC, HyperLiquid ended up adopting the latter as its primary asset. In his interpretation, large market participants were not simply integrated into the ecosystem; In the end they ended up imposing conditions.
On the same social network, a user known as Smallro_man questioned how native stablecoins leveraging community governance are being replaced by alternative currencies backed by Coinbase and Circle, reigniting the debate about decentralization, liquidity, and the balance of corporate influence.
There is also debate about the economic precedent established by the agreement. As Hyperliquid gains new revenue streams related to USDC reserves, some analysts have warned that stablecoin issuers and sellers may be forced to increase their share of revenue to secure a presence on major market protocols.
Hyperliquid’s decision at this time reflects the following trends in crypto networks that are becoming increasingly prominent: Stablecoins have become a major source of liquidity in the market, so protocols are competing to acquire them. If AQAv2 performs as Hyperliquid hopes, other projects may adopt a similar model, with revenue from stablecoin reserves providing a new revenue stream to fund ecosystem growth.
(Tag translation) Coinbase
