stable coins

Story: Hyperliquid Joins Circle and Coinbase in a Deal That Squeezes USDC’s Revenue Model

By Sydney TheCMO

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The Prisoner's Dilemma Nobody Wants to Talk About. The deal's been compared to a prisoner's dilemma. It's a decent analogy.

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What Hyperliquid's Position Actually Means for the Market. Hyperliquid isn't a small player anymore. The decentralized exchange has built a real user base…

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Where This Leaves Circle, Coinbase, and Hyperliquid. Right now, the situation is still unfolding. No one's said publicly how the revenue splits work,…

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Hyperliquid struck a deal with Circle and Coinbase. It's a move that puts real pressure on USDC's earnings — and the full fallout is still pretty murky.

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The three companies have aligned on a partnership that, at its core, creates a strange tension between cooperation and competition.

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The deal's been compared to a prisoner's dilemma. It's a decent analogy. In game theory, the classic prisoner's dilemma describes a situation where two parties acting in their…

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Hyperliquid gets the bigger platform. Circle and Coinbase get a partner with serious market presence — but they're also handing that partner tools that could eventually compete…

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Stablecoins aren't a simple product. The economics behind USDC, specifically, are built on yield.

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Hyperliquid isn't a small player anymore. The decentralized exchange has built a real user base and significant trading volume, and its leverage in any partnership negotiation…

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Circle needs USDC everywhere. More platforms, more transactions, more float. So on the surface, a Hyperliquid deal looks attractive.

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More context: Mizuho Keeps Circle at Neutral as USDC Loses Ground to Stablecoin Rivals

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Coinbase's situation is similar. It's a shareholder in Circle and a distribution partner for USDC. Anything that disrupts the revenue-sharing model is a problem.

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The stablecoin market has gotten more crowded and more competitive over the past few years. Tether still dominates by market cap. PayPal launched its own stablecoin.

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Right now, the situation is still unfolding. No one's said publicly how the revenue splits work, or whether Hyperliquid gets preferential terms on USDC usage.

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What's not unclear is that the competitive pressure is real.

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