Circle Expands Stablecoin Reach with Native USDC Launch on HyperEVM Blockchain

Circle, the prominent issuer of the USD Coin (USDC) stablecoin, has taken a strategic leap into the decentralized finance (DeFi) sector by introducing its native USDC on HyperEVM, the Layer 1 blockchain developed by Hyperliquid. This significant development was officially announced on October 16, with further details coming to light through media outlets on October 20.

Boosting Presence with a Pre-Launch Investment

Blockchain analytics disclosed interesting on-chain activity in the lead-up to the USDC rollout. A wallet associated with Circle reportedly acquired $4.6 million worth of HYPE tokens—HyperEVM’s native cryptocurrency—during the testing phase. This strategic acquisition underscores Circle’s commitment to the HyperEVM ecosystem ahead of the formal launch.

Governance Tensions: The USDH Ticker Debate

Hyperliquid’s platform recently experienced turbulence during a community governance vote surrounding the coveted USDH stablecoin ticker. A surprising outcome saw Native Markets, a relatively new entrant, surpass established payment giants in securing majority support. This fueled speculation that USDH would become the flagship stablecoin within the ecosystem.

However, Circle’s timely introduction of native USDC constitutes a countermeasure aimed at capturing market share before the USDH stablecoin fully cements its dominance. In response to current liquidity challenges for existing stablecoins such as feUSD and USDT0 within the HyperEVM network, Circle’s move presents a strong alternative to address these constraints and bolster transactional efficiency.

Enhancing Liquidity and Expanding Ecosystem Capabilities

Following the integration of USDC, Circle has announced ambitious plans to further strengthen the functionality of the HyperEVM blockchain. The roadmap includes linking HyperCore, a decentralized exchange (DEX), directly with HyperEVM. This integration will enable seamless bridging of perpetual (Perp) and spot trading balances, marking a critical step towards improving the network’s overall liquidity and providing a more robust trading infrastructure.

According to Circle CEO Jeremy Allaire, the company’s actions are in line with its larger mission: “Our goal is to deliver a secure, transparent, and highly liquid digital dollar.”

Market Reaction: HYPE Token Reaches Historic Milestones

The USDC launch has had an electrifying impact on the broader HyperEVM ecosystem, particularly on its native token, HYPE. Buoyed by the announcement, the token’s price surged to an all-time high above $59, pushing its market capitalization to an impressive $15 billion. This marks an extraordinary recovery for HYPE, which had previously dropped to as low as $9.50 following a security breach in April.

Circle’s Broader Strategy: Cementing Leadership in Emerging Blockchains

Circle’s decisive entry into the HyperEVM ecosystem signals the company’s ambition to dominate the stablecoin market in emerging blockchain arenas. By delivering transparency, scalability, and liquidity, Circle is positioning USDC as the go-to digital dollar solution for next-generation decentralized platforms.

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