USDH Being Acquired by Coinbase: Hyperliquid's Strategic Choice of Interests

Odaily资深作者

@wenser2010

2026-05-15 06:44

This article is about 2205 words, reading the full article takes about 4 minutes

The "hundred-war" of stablecoins shouting the slogan of decentralization has just begun, and it's already coming to an end.

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Key Takeaway: Coinbase has become the official USDC treasury deployer on Hyperliquid, while the native stablecoin USDH is being gradually phased out. This transaction achieves a win-win for three parties: Coinbase deepens its ties with the Hyperliquid ecosystem, Hyperliquid secures the lion's share of USDC reserve yields, and USDH issuer Native Markets receives compensation for selling its brand assets.
Key Elements:
1. As the official USDC treasury deployer, Coinbase will jointly stake HYP with Circle to activate AQAv2. Circle had previously purchased 500,000 HYPE tokens.
2. The current USDC scale on Hyperliquid is approximately $5.164 billion (up 2x year-over-year). Based on a $4.7 billion scale and a 3.8% interest rate, the annual reserve yield is approximately $160 million.
3. Coinbase will share the majority of reserve yields with Hyperliquid. Referencing the previous USDH mechanism, Hyperliquid is expected to receive approximately a 90% share, translating to a daily $440,000 HYPE token buyback.
4. Coinbase has acquired the brand assets of USDH issuer Native Markets. The team has received financial returns and stated it will independently develop new business.
5. Some community members have criticized this event as a setback for decentralization, arguing that the vote to choose Native Markets over Paxos was a matter of vested interests, with end users ultimately receiving no substantial benefit.

Original｜Odaily (@OdailyChina)

Author｜Wenser (@wenser2010)

In September last year, the controversy surrounding Hyperliquid's native stablecoin USDH became a focal point of the industry. Now, this once highly anticipated stablecoin has suddenly entered its "exit moment."

Last night, Coinbase announced that it would become the official USDC treasury deployer on Hyperliquid. Native Markets, the issuer of Hyperliquid's native stablecoin USDH, granted Coinbase the right to purchase the USDH brand assets. Subsequently, the USDH market will be gradually phased out. During this period, users can still exchange USDH for USDC or fiat currency without fees.

Thus, the once-prominent USDH has become an asset incorporated by Coinbase, and USDC has been officially established as Hyperliquid's official stablecoin and quote asset. Odaily will briefly analyze the details and subsequent impact of this event in this article.

USDH Exits, USDC Rises: The Economics Behind the $5 Billion

The drama of the "Hyperliquid ecosystem stablecoin battle" has ultimately concluded with a win-win-win outcome for Coinbase & Circle, Hyperliquid, and Native Markets, the issuer of USDH.

Coinbase has used this opportunity to further deepen its ties with the Hyperliquid ecosystem; Hyperliquid has secured the lion's share of the stablecoin reserve yields within its ecosystem; Native Markets, as the ultimate winner behind USDH, has reaped its rewards in the form of "selling USDH brand assets."

Coinbase & Circle: Binding to the Hyperliquid On-Chain Economy, Continuously Increasing HYPE Investment

Currently, the size of USDC on Hyperliquid is approximately $5.164 billion, a 2x increase year-over-year.

As an official partner and revenue sharer of USDC, this move by Coinbase is undoubtedly aimed at deeply binding itself with the Hyperliquid ecosystem.

Furthermore, according to the official announcement from Hyperliquid, both Coinbase (the treasury deployer) and Circle (responsible for the technical deployment of CCTP and native cross-chain infrastructure) have committed to staking HYPE to activate AQAv2 (Aligned Quote Asset v2).

It is worth noting that in September last year, Circle had already purchased HYPE tokens. Currently, their HYPE token staking scale has increased to around 500,000 HYPE.

Hyperliquid: Reaps the Majority of USDC Reserve Yields, Enjoys Benefits of Coinbase Alliance Status

As for the biggest winner of this collaboration, it is undoubtedly Hyperliquid, the ecosystem's foundation.

According to the official announcement, Coinbase will share the vast majority of reserve yield revenue with the Hyperliquid protocol going forward. Although the specific split ratio has not been disclosed, based on the previous USDH yield-sharing mechanism, Hyperliquid would effectively receive approximately 90% of the reserve yields.

According to calculations by a Hyperliquid community member, based on a scale of $4.7 billion and a 3.8% interest rate yield, this income corresponds to approximately $160 million. In other words, it equates to a daily HYPE token buyback of $440,000.

Moreover, with the CLARITY Act passing the vote in the U.S. Senate Banking Committee, the deep binding between Hyperliquid and Coinbase also implies that HYPE and Hyperliquid have gained some support at the U.S. regulatory level.

Native Markets: USDH's Historical Mission Accomplished

As the issuer of Hyperliquid's native stablecoin USDH, Native Markets may appear to be the biggest loser in this "incorporation event." However, judging from their official statement, their outcome can be considered a "graceful exit."

On one hand, USDH provided a precedent and template for Coinbase and the Hyperliquid protocol to share USDC yield proceeds. On the other hand, Coinbase likely directly acquired the USDH brand assets this time. The USDH stablecoin issued by the Native Markets team was essentially "acquired by Coinbase," thereby providing the team with some financial returns.

Going forward, Native Markets has stated that it will remain independent and seek development in other areas.

After USDH's Exit: In a Win-Win-Win Scenario, the Only Casualty is the USDH User

Of course, Native Markets' exit has not been met with unanimous "praise." Hyperliquid community users have also expressed dissatisfaction with their claims of "getting a seat at the negotiating table."

Some believe that USDH's exit signifies a complete regression from the era of decentralization.

Others have pointed out, Initially, the stablecoin issuer vote should have chosen Paxos. At least they would have considered users and stablecoin growth. Those who voted for Native Markets were merely aligning factions and pursuing internal interests. In the end, users gained nothing. These sentiments have garnered agreement and support from many.

Thus, the drama of "the CEO's pursuit of love" and "defying the giants," which unfolded a year ago, has finally come to an end.

Only now, looking back at the scene of Hyperliquid "shaking hands" with Coinbase and Circle, it is somewhat lamentable and slightly ironic.

In the end, it all came down to the distribution of interests, rather than the once loudly proclaimed slogans of "for the community" or "for Hyperliquid."