Circle announced on Tuesday that it has taken a direct stake in the Hyperliquid ecosystem, marking its first purchase of HYPE tokens and hinting at an expanded governance role in the future.
The move comes alongside the launch of native USDC and cross-chain transfer protocol CCTPv2 on HyperEVM, which will allow users to move Circle’s stablecoin seamlessly across the exchange’s infrastructure. Circle also disclosed that it is considering becoming a Hyperliquid validator, a step that would position the company as an active participant in network security and consensus.
“Circle is open for business with the Hyperliquid Ecosystem – if you are a developer, our public SDKs and APIs are available for you today; if you are a financial institution, trading and markets firm, or enterprise looking to build on Hyperliquid, you can engage with Circle BD, onboard with Circle Mint, access and mint and redeem USDC for Hyperliquid,” Circle wrote in a blog post.
The decision reflects Circle’s strategy to go beyond integrating USDC into trading venues and toward influencing protocol development and governance. Validators in proof-of-stake systems are responsible for verifying transactions and maintaining the network’s integrity, often shaping its future direction.
Circle framed the investment as part of a broader plan to support HyperEVM and HIP-3 developers with dedicated incentive programs and new on-chain tools. The company has also emphasized its regulatory standing and global liquidity base, citing more than $1 trillion in cumulative USDC minting and redemption to date.
The entry into Hyperliquid governance raises questions about how traditional firms navigate roles typically held by decentralized actors.
This is a developing story.
This article was generated with the assistance of AI and reviewed by editor Jeffrey Albus before publication.
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Source: https://blockworks.co/news/circle-invests-in-hype-and-eyes-validator-role