Circle and Hyperliquid announced the integration of native USDC, which could significantly impact capital efficiency in DeFi and the settlement of stablecoins.
Integration of USDC on Hyperliquid
Circle and Hyperliquid have announced the launch of native USDC integration using the updated Cross-Chain Transfer Protocol (CCTP v2). This integration comes amid a rise in Hyperliquid's assets under management, which have surpassed $5.5 billion.
Impact on the Cryptocurrency Market
The integration has had a noticeable impact on major cryptocurrencies, including USDC and Hyperliquid's native token, HYPE. The increased liquidity has resulted in a 3% rise in the price of HYPE. The increase in total value locked (TVL) indicates growing interest from institutional investors.
Future of DeFi and Stablecoin Integration
The integration eliminates the need for wrappers and storage risks, promoting institutional trading activity. Circle's CEO, Jeremy Allaire, mentioned that the integration would allow for direct minting and redemption of USDC on the Hyperliquid platform. Such advancements may accelerate the adoption of protocol-native stablecoins in DeFi.
The integration of USDC on the Hyperliquid platform marks a significant step towards increased capital efficiency in DeFi and opens new opportunities for cross-chain activity.
