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▲ Hyperliquid (HYPE)/AI generated image
Coinbase has taken a step to expand its stablecoin dominance in the decentralized perpetual futures exchange market by participating as Hyperliquid's official USDC treasury distributor. Coingape reported on May 14 (local time) that Coinbase expanded its support for Hyperliquid and significantly increased its HYPE staking position.
Coinbase announced via X (formerly Twitter) that it has become Hyperliquid's official USDC treasury distributor. Coinbase explained that on-chain markets operate 24/7, are always accessible, instantly transferable, and require collateral with deep liquidity. Coinbase emphasized that USDC meets these conditions.
According to Coinbase, USDC has established itself as the primary stablecoin on Hyperliquid's crypto leverage trading platform since its launch in 2023. This decision is expected to further strengthen USDC's position as a core collateral token within the Hyperliquid ecosystem.
Coinbase also stated that it significantly increased its staked HYPE position as part of this partnership. Coingape reported that the Hyperliquid token rose by more than 5% after the announcement, trading at approximately $41 based on TradingView data.
However, Coinbase's stock price showed weakness, separate from the announcement. According to TradingView data, Coinbase shares traded at approximately $197 at market open that day, falling by more than 2%.
Coinbase also stated that during this transition, it agreed to terms granting Native Markets the right to purchase USDH brand assets. Native Markets launched Hyperliquid's native stablecoin, USDH, last year.
Coinbase explained that while the USDH market is still fully operational, it will be gradually phased out over time. Coinbase stated that USDH remains fully collateralized, and users will be offered fee-free USDC conversion and fiat redemption during the transition period.
Simon Dedic, founder of Moonrock Capital, hailed this move as a significant victory for USDC, not USDT, in securing the Hyperliquid market. Dedic mentioned that it is very positive for Circle. Regarding the phasing out of USDH over time, he said it shows that even in community-driven ecosystems like Hyperliquid, the concept of native ecosystem alignment no longer exists.
Dedic pointed out that users ultimately prioritize liquidity, distribution networks, and network effects. Coingape reported that Coinbase's participation as Hyperliquid's USDC treasury distributor is a transition that strengthens USDC's status as a collateral token, accompanied by an expansion of HYPE positions and the gradual phasing out of USDH.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses incurred based on it. The content should be interpreted for informational purposes only.*
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