Coinbase is deepening its involvement in the Hyperliquid ecosystem through a deal with Native Markets to absorb the USDH stablecoin. Native Markets will shift its USDH infrastructure toward USDC under a new treasury-sharing model, effectively sunsetting USDH as Hyperliquid’s primary quote asset.
The transition positions USDC as the dominant stablecoin across Hyperliquid, a decentralized perpetuals trading network. Deal specifics—including financial terms or valuation—were not disclosed. The move marks a strategic expansion for Coinbase into defi infrastructure.
By absorbing USDH, Coinbase gains a foothold in Hyperliquid’s rapidly growing derivatives market, which competes with centralized exchanges like dYdX and GMX. The shift underscores the increasing role of USDC in defi, where stablecoin dominance is a key competitive battleground.
This development signals a broader trend: centralized crypto firms acquiring defi-native infrastructure to capture liquidity and user bases. Market observers will watch whether similar integrations follow, as USDC’s footprint expands across perpetuals trading platforms.
A counterargument holds that USDH’s sunset may reduce competition among stablecoins, concentrating power in a single issuer and creating systemic risk if USDC faces regulatory or technical issues.