Circle, the issuer of the USD Coin (USDC) stablecoin, has launched native USDC and the Cross-Chain Transfer Protocol (CCTP) version 2 on Hyperliquid, a major decentralized exchange operating on Arbitrum. This marks a key infrastructure enhancement in the DeFi space, enabling more seamless and efficient capital movement across blockchains [1].

The integration allows for direct minting and redemption of USDC on Hyperliquid’s HyperEVM layer, eliminating the need for intermediaries or cross-chain bridges that typically introduce risks such as latency or counterparty exposure. This development is expected to benefit institutional traders and liquidity providers by improving the overall efficiency and safety of DeFi derivatives trading [1].

According to the report, the launch has already secured a 70% share of USDC activity on Arbitrum, positioning Hyperliquid as a dominant player in the DeFi derivatives market. This surge in USDC inflows strengthens the platform’s role in the broader ecosystem and highlights the growing adoption of stablecoins as a primary medium for transactions and settlements [1].

Circle CEO Jeremy Allaire emphasized the strategic significance of this move, stating that the integration enables “seamless capital movement between supported blockchains with 1:1 efficiency.” The deployment of native USDC and CCTP v2 on Hyperliquid not only streamlines transaction processes but also enhances liquidity and reduces the fragmentation that has historically challenged cross-chain operations [1].

Financial analysts view this development as a significant step forward in DeFi infrastructure. The expanded use of USDC as a settlement currency is expected to reduce systemic inefficiencies and promote broader capital utilization across interconnected platforms. Additionally, the move is likely to drive higher trading volumes and greater accessibility for institutional participants, who increasingly demand reliable, low-risk, and high-liquidity environments for their operations [1].

The deployment aligns with Circle’s broader strategy of expanding USDC’s utility and reach across key blockchain networks. Past integrations have demonstrated the company’s ability to enhance stablecoin adoption and infrastructure scalability, reinforcing the ongoing evolution of DeFi as a viable alternative to traditional financial systems [1].

Source: [1] Circle Launches Native USDC on Hyperliquid Enhancing Crypto Infrastructure (https://coinmarketcap.com/community/articles/688c199983e7604329dcbf24/)