Hyperliquid's USDC deal could redirect $160M in revenue to HYPE — and squeeze Circle and Coinbase!

Hyperliquid's new arrangement with Coinbase and Circle designates USDC as the official "Aligned Quote Asset" on the perpetual futures exchange, granting Hyperliquid as much as 90% of the reserve income generated by stablecoin deposits on the platform. With roughly $5.1 billion in USDC currently sitting on the exchange, Syncracy Capital co-founder Ryan Watkins estimates the deal could channel between $135 million and $160 million in annual revenue toward the protocol and HYPE buybacks — and potentially $300 million to $500 million if stablecoin balances continue to expand.

Watkins called it Hyperliquid's biggest announcement of the year, arguing the protocol now captures both trading fees and stablecoin yield — a structure that makes token buybacks more resilient across market cycles because deposits hold steadier than trading volume during downturns. HYPE has already responded, gaining…