On-Chain Data Detected: Circle and Coinbase Made a Major Investment in an Altcoin

Circle and Coinbase are expanding their operations within the Hyperliquid ($HYPE) ecosystem, a decentralized derivatives exchange.

According to on-chain data, Circle began purchasing $HYPE tokens after investing approximately $5 million in $USDC. The company currently holds approximately 97,300 $HYPE tokens, all staked, with a total value estimated at around $4 million.

The development comes after Coinbase announced it would become the official “treasure broker” for $USDC on Hyperliquid. According to the announcement, Coinbase will manage $USDC reserves under Hyperliquid’s AQAv2 system and share a significant portion of the reserve yields generated from the supply on the protocol with Hyperliquid.

As part of the agreement, it was announced that Coinbase has acquired the right to purchase $USDH branded assets under a memorandum of understanding with Native Markets. In parallel, the $USDH market is planned to be phased out over time. Coinbase will continue to operate the “Compliant Quote Asset” model within the Hyperliquid ecosystem and will also continue to contribute to the Beneficial Fund.

Meanwhile, Coinbase reportedly purchased and staked approximately 500,000 $HYPE tokens last week. This purchase is said to have a market value of around $20 million. Amidst these developments, and while Senate discussions on the Clarity Act were ongoing, Circle Internet Group shares reportedly turned positive quickly, rising by 1.5%.

*This is not investment advice.