Coinbase to Hold Hyperliquid’s USDC Treasury After USDH Wind-Down

Hyperliquid announced it will wind down the USDH stablecoin and transfer the digital-dollar reserves into USDC, which Coinbase will hold as an on-chain treasury to support redemptions and liquidity.

The company said the decision followed a review of its stablecoin operations. Hyperliquid plans to convert or move the collateral backing USDH into USDC and place those funds with Coinbase for custody and market deployment.

Hyperliquid will begin the wind-down immediately and expects the transfer and related redemption processes to take place over the coming weeks. Coinbase will receive the USDC treasury and is expected to use its custody services and market infrastructure to manage redemptions and route liquidity on-chain where required.

Coinbase’s custody platform supports institutional clients and corporate treasuries. Holding the reserves in USDC positions the assets within a widely used dollar-pegged stablecoin across exchanges, wallets and decentralized finance platforms.

Hyperliquid outlined a redemption process for USDH holders to convert tokens to USDC or other supported assets. The company said it will provide instructions and timelines to users and will work with Coinbase to coordinate transfers and liquidity routing to limit disruption during the wind-down.

The transferred reserves will be held as on-chain USDC balances that Coinbase will allocate across liquidity channels as needed to meet redemption demand and maintain market functioning during the period. Hyperliquid said it will publish status updates to keep token holders informed.

Hyperliquid described the action as an exit from the USDH product to concentrate resources on other parts of its business. The firm did not disclose the size of the reserves being moved.

Stablecoins pegged to the U.S. dollar are commonly backed by cash, short-term securities or other digital assets. Changes in issuer strategy and market conditions have led some issuers to consolidate or retire stablecoin products.

Coinbase will provide technical support for custody and the on-chain handling of the transferred USDC balances while Hyperliquid completes redemptions. Hyperliquid advised users to follow its official channels for the latest redemption instructions and timeline updates.