Hyperliquid earns $105M monthly from Coinbase USDC interest

Grayscale research published on October 30 details how Hyperliquid generates steady monthly revenue from interest payments made by Coinbase on approximately $6 billion in customer deposits. The arrangement, which began in May, sees Coinbase remit 90% of the interest earned on USDC reserves held on the Hyperliquid platform to the exchange, regardless of trading activity.

Stablecoin Interest Becomes Core Revenue

Hyperliquid, a blockchain-based exchange for leveraged bets on prices, reported revenue of about $105 million in September, a figure nearly identical to the same period a year earlier despite a broader crypto downturn. Grayscale describes this interest income as Hyperliquid’s steadiest source of revenue because it does not depend on market volume or trading fees. The interest is generated because stablecoin deposits are invested in US Treasury bills, producing real cash yields.

The partnership dates back to May, when Coinbase became the treasury partner for USDC, a dollar stablecoin, on Hyperliquid. As part of the deal, USDC displaced USDH, a rival stablecoin built to keep interest within the Hyperliquid ecosystem, to become the platform’s main trading currency. Coinbase retains the remaining 10% of the interest and holds the customer deposits themselves.

Shift in Revenue Composition

Grayscale’s data shows a significant shift in Hyperliquid’s revenue mix. In mid-2025, crypto trading fees accounted for over 90% of the platform’s revenue. By September, that share had dropped to 64%. The decline reflects the growth of an outsourced revenue model, which Grayscale states hit $38 million last month and attracted major institutional partners.

Under this model, outside firms list futures on assets such as silver, oil, and pre-IPO shares on Hyperliquid. These external partners retain up to half of the fees generated from these listings. Grayscale, which sells the Grayscale Hyperliquid Staking ETF (HYPG) and discloses it may hold the assets it covers, noted that the outsourced model has diversified the platform’s income streams.

Wall Street Reaction and US Expansion

Wall Street analysts had already assessed the financial impact of the Coinbase-Hyperliquid partnership. In July, Mizuho and JPMorgan turned bearish on Circle, the issuer of USDC, and JPMorgan cut its earnings estimates for Coinbase, citing pressure on USDC economics. JPMorgan trimmed projections for both firms following the partnership, noting the erosion in USDC economics caused by the 90% interest remittance to Hyperliquid.

According to Grayscale’s earlier reporting, 99% of Hyperliquid’s fees go to a fund that buys and burns its HYPE token, a mechanism similar to a stock buyback. Coinbase’s interest payments feed directly into this fund. This week, ICE, the parent company of the NYSE, partnered with tradexyz to build perpetual futures on Hyperliquid in the US. Additionally, Kraken’s parent company moved to bring Hyperliquid to US traders. The HYPE token rallied on Wednesday following news of these US market entry efforts. Grayscale’s note does not assign a specific value to Coinbase’s side of the trade, though increased US deposits would imply larger interest payments to Hyperliquid.