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Hyperliquid will capture up to 90% of USDC reserve income—$135‑160 million annually—pressuring Circle and Coinbase margins and boosting HYPE token buybacks.
Hyperliquid’s new agreement gives it up to 90% of the yield from the $5 billion USDC held on its platform, translating to $135‑160 million of annual revenue that will fund HYPE token buybacks and tighten profit margins for Circle and Coinbase [1].
| At a glance | |
|---|---|
| USDC on Hyperliquid | ≈ $5 bn (double last year) [1] |
| Yield share for Hyperliquid | Up to 90% of reserve income [1] |
| Estimated annual revenue from yield | $135‑160 m [1] |
| Catalyst | USDC‑yield sharing deal with Circle & Coinbase [1] |
Under the agreement announced on May 14, Coinbase becomes the official treasury deployer for USDC on Hyperliquid, while Circle continues to handle minting, redemption and cross‑chain transfers [1][2]. The platform will retain as much as 90% of the reserve income after operational costs, a shift from the historic model where Circle and Coinbase kept the full interest earnings [1]. Analysts estimate this could redirect $135‑160 million per year back into Hyperliquid’s ecosystem, providing a new, stable cash flow for token buybacks [1][2].
Circle and Coinbase have historically captured 100% of USDC’s yield, which is generated by short‑term U.S. Treasury holdings [2]. Ceding a large portion of that income on a platform that now holds a meaningful slice of total USDC supply introduces margin pressure that could shave tens of millions off combined EBITDA for the two firms [1]. For Hyperliquid, the influx of yield‑derived funds augments its aggressive tokenomics—its trading fees already fund daily HYPE buybacks, and the new yield stream adds “hundreds of thousands of dollars” of daily buy pressure [1]. The market responded positively, with HYPE token price showing notable gains following the announcement [1].
Hyperliquid’s native stablecoin, USDH, is being phased out in favor of USDC, which already commands roughly $5 bn in deposits on the network—about twice the amount recorded a year earlier [1]. The revenue‑sharing model means that most of the yield generated by these deposits will stay on‑chain, reinforcing Hyperliquid’s economic sovereignty while still leveraging USDC’s compliance and liquidity [1].
The agreement marks a rare instance of a DeFi platform redirecting stablecoin yield inward, challenging the traditional revenue model of major stablecoin issuers and potentially reshaping profit dynamics across the crypto‑finance ecosystem.
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AI-assisted synthesis by the TrendWatcher Editorial Desk · sourced from 3 outlets · Jul 20, 2026 · How we report
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