Circle launches native USDC and CCTP V2 on Hyperliquid, boosting stablecoin liquidity, cross-chain transfers, and real-time payments adoption.
Circle has announced the launch of native USDC and CCTP V2 on the Hyperliquid platform. This update is expected to improve cross-chain crypto payments and expand access to stable digital dollars. Circle announced it via its official X (formerly Twitter) account.
Hyperliquid Now Holds 70% of USDC on Arbitrum
First of all, Hyperliquid is an expanding platform that already stores 70 percent of all USDC on Arbitrum, one of the Layer 2 networks of Ethereum. This month alone, its assets under management (AUM) have soared to $5.5 billion after they were below $4 billion. Of that, approximately 1.2 billion growth was attributed to USDC alone, which indicated an increased demand of the stablecoin on this platform.
According to the blog post, the new rollout is going to be implemented on HyperEVM, a smart contract platform that will be a part of Hyperliquid. HyperEVM is connected to HyperCore, a platform that has tools such as order book decentralized exchange (DEX). These systems together enable developers and users to work with deep onchain liquidity. In the near future, users will be capable of depositing USDC to HyperCore and utilize it across different applications on HyperEVM.
The first advantage of the native USDC launch is that it is a fully reserved and regulated digital dollar. It can be exchanged 1:1 with U.S. dollars, hence making it appealing to the institutions. Also, the authorized users are able to utilize Circle Mint to conveniently deposit and withdraw. With this update, the developers will have an easy time integrating the stablecoins in their applications with improved speed and reduced risk.
Besides, CCTP V2 (Cross-Chain Transfer Protocol) introduces new developer tools. It allows users to transfer native USDC between Hyperliquid and other blockchains with complete capital efficiency. This implies that the value remains the same across networks. It is also possible to develop cross-chain onboarding, token swaps, payment, and treasury management apps.
Related Reading: Ant International Partners with Circle to Integrate USDC
CCTP V2 Launch Aims to Reduce Cross-Chain Risk
The native USDC on Hyperliquid opens doors for several real-world use cases. For example, traders will be able to trade both perpetuals and spot with USDC. Financial applications can be developed to handle faster transactions, stable payments and efficient cross-chain payments using USDC. These are the updates that will allow providing a smoother and safer user experience.
Most recently, Fidelity National Information Services (FIS) joined in collaboration with Circle as well. With this integration, U.S. banks will be able to send or receive USDC payments in real-time, and it is yet another step toward the introduction of blockchain to traditional banking. These developments indicate that the stablecoins such as the USDC are becoming trusted in both the cryptocurrency and traditional financial systems.
On-chain trading is growing fast, and as a result, USDC on Hyperliquid has nearly reached \$4.9 billion this year. With this rise, the launch of native USDC and CCTP V2 is expected to boost liquidity. Moreover, it will help reduce the risks that come with moving assets between different blockchains. It is also used to simplify treasury operations and onboarding of the crypto projects.
Lastly, the collaboration of the Circle and Hyperliquid indicates an emerging trend toward the stable, cross-chain digital payments. The use of improved tools and significant integration provides users and developers with additional reasons to take up USDC in different applications.
