Stablecoin issuer Circle appears set to deepen its role in decentralized finance by preparing a native launch of USD Coin (USDC) on Hyperliquid’s Layer 1 chain, HyperEVM.

On Sept. 12, blockchain researcher MLM Blockchain flagged test transactions involving USDC on HyperEVM’s mainnet, suggesting that a native deployment could roll out in the coming weeks.

Adding to speculation, the same wallet connected to Circle recently acquired about $5 million worth of Hyperliquid’s HYPE token.

The purchase reinforced the view that Circle is positioning itself more deeply in the Hyperliquid ecosystem. If the launch goes live, HyperEVM would join 24 other networks that already support USDC, including Ethereum, Solana, and the XRP Ledger.

Circle’s USDC is the second-largest stablecoin in the industry, with a market capitalization of more than $72 billion. Hyperliquid, on the other hand, is the dominant decentralized perpetual exchange, controlling more than 60% of the market.

USDC situation on Hyperliquid

The potential launch follows a public statement from Circle CEO Jeremy Allaire, who wrote that the company intends to be “a major player and contributor” within the Hyperliquid ecosystem.

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According to him:

“We are coming to the HYPE ecosystem in a big way. We intend to be a major player and contributor to the ecosystem. Happy to see others purchase new USD tickers and compete Hyper fast native USDC with deep and nearly instant cross chain interoperability will be well received.”

Yet Circle’s push comes as Hyperliquid prepares to introduce its native stablecoin, USDH. That project has drawn attention from major players such as Native Market, Paxos, OpenEden, and Agora, signaling a real challenge to Circle’s position.

Over the past year, Hyperliquid has relied heavily on Circle’s stablecoin to power its markets, with around $5.773 billion in USDC supply on the platform. That concentration means Hyperliquid accounts for roughly 8% of all USDC in circulation, making it one of Circle’s most dominant chains, according to DeFiLlama data.

So, should liquidity migrate to USDH, Circle could lose as much as $200 million in annual revenue, which might impact its business.

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Ethereum continues to show remarkable resilience, with demand leaving its mark even as price action remains sideways. ETH has been consolidating in a narrow range, mirroring the broader market where Bitcoin trades cautiously and altcoins display selective strength. Yet behind the scenes, institutional interest in Ethereum is quietly building, setting the stage for what could be the next major move.

According to fresh data from Lookonchain, SharpLink recently transferred $379 million USDC to Galaxy Digital, capital that may be allocated toward purchasing more ETH. This transfer underscores a growing trend: institutional players are not shying away from Ethereum, even amid volatility and macroeconomic uncertainty. Instead, they are positioning themselves for what could be a decisive breakout once the current consolidation phase resolves.

SharpLink Gaming is among the first Nasdaq-listed companies to design a treasury strategy centered on ETH, marking a significant milestone in corporate adoption. By treating Ethereum as a strategic reserve asset, it reinforces the idea that ETH’s role extends well beyond speculative trading into long-term institutional portfolios.

Related Reading: Bitcoin Mining Difficulty Keeps Rising Despite Price Volatility – Details

With consolidation tightening and institutional inflows accelerating, the coming weeks may prove critical. Many investors expect a massive surge for Ethereum once the current sideways structure breaks, potentially marking the start of its next major rally.

SharpLink Expands Ethereum Treasury

SharpLink has officially announced that its total Ethereum holdings climbed to 837,200 ETH as of August 31, 2025, solidifying its role as one of the largest corporate holders of the asset. The company continues to pursue its ETH-focused treasury strategy aggressively, with notable activity reported in the week ending August 31.

During that week, SharpLink purchased an additional 39,008 ETH, bringing its cumulative balance to new heights. These acquisitions were financed through $46.6 million in net proceeds raised via the company’s at-the-market (ATM) facility, demonstrating its ongoing ability to secure fresh capital for strategic allocations. Importantly, the average purchase price for the week’s ETH acquisitions stood at $4,531, reflecting the company’s confidence in buying at elevated levels as Ethereum consolidates near all-time highs.

This accumulation has elevated SharpLink to the position of the second-largest ETH treasury holding company, trailing only BitMine. BitMine currently holds more than 2 million ETH, valued at approximately $9.2 billion. Together, these treasury allocations highlight how major institutions are increasingly adopting Ethereum not only as a speculative asset but also as a long-term strategic reserve.

By expanding its ETH holdings so aggressively, SharpLink is sending a clear signal to the market: Ethereum’s role in corporate treasuries is no longer theoretical. As adoption grows, such moves could prove pivotal in reinforcing ETH’s status as a core asset in the global digital economy.

ETH Analysis: Trading Sideways

Ethereum is trading at $4,436, showing a 2% daily gain as the price begins to emerge from a prolonged consolidation phase. The 12-hour chart highlights that ETH has been moving sideways for much of September, holding firmly above $4,200 support. Now, momentum appears to be picking up as the price tests resistance around $4,450.

The 50 SMA at $4,407 is now acting as immediate support, while the 100 SMA at $4,182 provides a stronger cushion below. The 200 SMA, sitting at $3,460, remains well beneath the current range, confirming that ETH’s broader bullish structure is intact. As long as Ethereum maintains levels above $4,200, the technical setup favors continuation to the upside.

For bulls, the next critical test lies in reclaiming $4,600, a level that has repeatedly capped rallies in recent weeks. A decisive breakout above this resistance would set the stage for ETH to retest the $4,800–$5,000 zone, potentially marking the start of a stronger bullish leg.

Featured image from Dall-E, chart from TradingView

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Tanzeel Akhtar is a seasoned journalist who has been reporting on cryptocurrency and blockchain technology since 2015. Her work has appeared in leading publications including The Wall Street Journal,…

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August 27, 2025

Finastra, a financial services software firm, has announced a collaboration with Circle Internet Group, Inc. (NYSE: CRCL), a stablecoin firm, to allow banks to integrate USDC settlement into cross-border payment flows.

In an announcement, the firm explains that this initiative will use Finastra’s payment hub solutions, including Global PAYplus (GPP), marking the first time Finastra will connect financial institutions to Circle’s payment infrastructure.

The companies said the partnership will also allow for faster international transfers by combining Finastra’s banking network’s scalability with USDC’s stability and transparency.

USDC Settlement Option

Through this collaboration, Finastra’s GPP customers—already processing over $5 trillion in cross-border transactions daily—will be able to settle transactions in USDC, even when underlying payment instructions remain denominated in fiat currencies.

This new option reduces reliance on traditional correspondent banking networks, allowing banks to accelerate settlement times without compromising compliance requirements or foreign exchange processes.

Empowering Banks With New Options

“This collaboration is about giving banks the tools they need to innovate in cross-border payments without having to build a standalone payment processing infrastructure,” said Chris Walters, CEO of Finastra.

He explained that by linking Finastra’s payment hub to Circle’s blockchain-based settlement infrastructure, banks can explore payment models while maintaining operational continuity.

Expanding USDC’s Global Role

“Finastra’s reach and expertise in powering the payments infrastructure for leading banks worldwide makes them a natural choice to further expand USDC settlement in cross-border flows,” said Jeremy Allaire, co-founder, chairman, and CEO of Circle.

With stablecoin adoption gaining momentum, the Finastra-Circle partnership represents a major move in reshaping international payments.

Circle Debuts Layer-1 Blockchain Arc Using USDC for Native Gas

Earlier this month, Circle unveiled Arc, an open Layer-1 blockchain designed specifically for stablecoin finance. This marks what the company calls a “defining moment” as it moves toward developing a full-stack internet financial platform.

The announcement came alongside Circle’s fiscal Q2 2025 results, which showed substantial growth in its core business. Circle reported that USDC in circulation surged 90% year-over-year to $61.3 billion, reaching $65.2 billion as of August 10, 2025. Total revenue and reserve income grew 53% to $658 million, while adjusted EBITDA climbed 52% to $126 million.

The company posted a net loss of $482 million, primarily due to $591 million in non-cash charges tied to its June IPO. That offering raised $1.2 billion, with 19.9 million newly issued shares sold at $31 each, generating $583 million in net proceeds.

CEO Jeremy Allaire described the IPO as a “pivotal moment” for Circle and for the broader adoption of stablecoins, noting accelerating interest from global financial institutions and internet companies.

Circle has launched a unified cross-chain infrastructure that enables businesses to access USDC balances across multiple blockchains.

An Aug. 19 announcement labeled the new product as Gateway, a system that addresses liquidity fragmentation issues that force companies to pre-position funds across chains and manage complex rebalancing operations.

Gateway combines smart contract infrastructure with an off-chain attestation service to create a single USDC balance accessible on Arbitrum, Avalanche, Base, Ethereum, OP Mainnet, Polygon PoS, and Unichain.

Additional chains, including Circle’s Arc, will receive support in future releases.

The platform targets payment service providers, exchanges, custodians, digital wallets, and DeFi trading firms that require efficient cross-chain USDC management without operational overhead.

Gateway maintains non-custodial design principles, ensuring depositor control over USDC holdings at all times.

Fund access requires both user signatures and Gateway attestations, preventing unauthorized movements or burns. The system includes trustless withdrawal mechanisms allowing users to recover funds after seven days if the Gateway API becomes unavailable.

Unified UX for financial infrastructure

The system operates through a three-step process beginning with USDC deposits into Gateway Wallet contracts on any supported blockchain.

After deposit finalization, Gateway credits the unified balance and instantly makes funds accessible across all supported chains regardless of the original deposit location.

Users initiate transfers by signing burn intents, which developers submit to the Gateway API for verification and attestation generation.

Once users sign burn intents, corresponding USDC mints execute on destination chains within the subsequent block, providing single-chain experience speeds for cross-chain value transfers.

Among the use cases are payment service providers reducing working capital requirements while exchanges eliminate rebalancing delays.

Additionally, digital wallets display unified USDC balances, and DeFi trading firms deploy capital more efficiently across chains without pre-positioning funds.

Gateway represents Circle’s latest initiative to enhance stablecoin utility following several strategic moves this year.

The company introduced its Refund Protocol in April, establishing a non-custodial dispute resolution system for stablecoin transactions without centralized intermediaries.

Circle also recently announced Arc, its enterprise-focused layer-1 blockchain scheduled for public testnet between September and December 2025.

Arc will serve as high-performance infrastructure for stablecoin payments, foreign exchange, and capital markets applications while supporting USDC as its default gas token and offering sub-second settlement finality.

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The digital currency realm has been evolving at a rapid pace today. Some of the top digital currencies that exist today are Tether (USDT) and USD Coin (USDC). These cryptocurrencies have widened the realm of digital finance. Gradually, individuals and institutions are accepting these digital currencies, further contributing to their popularity. The market capitalization of USDT reached USD 104.1 billion in March 2025, highlighting its solid position in the market.  

Currently, the regulatory landscape relating to digital currencies is undergoing a dynamic change. As such, digital currencies hold immense potential at present; you need to understand how the regulatory setting may shape their future trajectory.  You must explore how regulatory developments may influence the future of USDT and USDC.

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An Insight into USDT

Before looking at USDT and USDC stablecoin regulation, it is essential to know about these digital currencies in detail. USDT or Tether is a cryptocurrency that has been pegged to the U.S. dollar to maintain stability. Thus, it is a stablecoin whose value remains consistent, unlike other types of cryptocurrencies that have high volatility.

The digital currency came into existence in 2014. Since then, it has been driving the future of money through digitalization. By leveraging the blockchain space, USDT has successfully established itself as a top digital token that is built on diverse blockchains. Its high degree of transparency has significantly contributed to its widespread adoption in recent times. 

An Insight into USDC

USDC is known as the largest regulated digital dollar that exists in the world. It came into existence in the year 2018. As it is entirely backed by real cash as well as cash equivalents, it offers high security to users.  The digital currency has shown immense promise for individuals and businesses. By using these digital currencies, it is possible to make seamless financial transactions in a secure manner. 

In the current times, USDC serves as the perfect example that shows the unification of digital innovation and conventional financial stability. By leveraging blockchain technology, DeFi applications, and digital wallets, it is possible for users to use USDC.

Now you may be wondering – Which is better, USDC or USDT? The answer to the question depends on individual preference. If you wish to use a widely adopted stablecoin, USDT is a better option. On the other hand, if you wish to choose a more-regulated digital currency, USDC is an ideal choice. Thus, while answering the question – Which is better, USDC or USDT? You need to focus on your exact needs.

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Impact of regulations on USDT and USDC

As there is a rise in the adoption of USDT and USDC, high emphasis is being laid on the regulatory aspects. Due to a surge in regulatory pressure, the future of USDC as well as USDT may undergo major changes. Some of the key effects of regulatory developments on these digital currencies include:

• Higher transparency in USDT 

An increase in regulatory pressure may further increase transparency in Tether. More detailed information may be released so that users can be aware of risky assets. Thus, users who may be wondering about USDT vs USDC, which is safer, can find an answer.

• Expansion of USDT at the global level 

The increase in regulations can positively impact the trust of the general public in USDT. People who may have questions about USDT vs USDC, which is safer, can feel encouraged to use USDT in addition to USDC. As a result, its adoption may reach new heights all across the globe.

• Regulatory investigations for Tether 

In the past, Tether has been fined for the misrepresentation of its reserves. Due to the rise in regulatory pressure, more investigations may be carried out, which may compromise its reputation in the global market. 

• Regulatory alignment for USDC 

The future of USDC may be positively influenced due to better alignment with the regulations. Since the digital currency already adheres to regulations and policies, regulatory pressure may further strengthen its compliance.

• Higher institutional adoption 

The solid regulation of USDC has the potential to encourage institutions to adopt the specific digital currency. The implementation of well-defined regulations may encourage businesses and entities to shift towards digital currencies and show their commitment to digital transformation. Furthermore, it can also give rise to new opportunities by integrating these stablecoins into digital apps, fintech products, and many more.   

• Concerns relating to freezing 

The need to comply with tight regulations may automatically give rise to freezing concerns.  In the future, USDC may be able to freeze the wallets of users. As a result, they may face decentralization-related concerns that may adversely affect their overall experience. 

Thus, heightened regulatory pressure has the potential to give rise to both positive and negative impacts on USDT and USDC. In order to understand the exact impact, it is imperative to understand USDT vs USDC. By understanding the major differences between these digital currencies, you can identify how regulatory elements may have diverse effects on them. 

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Understanding USDT vs USDC

In order to explore how regulations and legislation may impact the future of USDT and USDC, it is a must to understand how these currencies differ. The basic differences between these cryptocurrencies have been captured below:

The USDC currency is well-known for its feature relating to high transparency. Regulatory compliance ensures that no information remains hidden from users. The transparency of USDT is not adequate. It has faced investigations in the past due to reserve disclosure concerns.

Although both these stablecoins are widely used, USDC is preferred by institutions. This is mainly because of regulatory compliance. Thus, USDC stablecoin regulation certainly works in its favor and contributes to acceptance at institutional levels. As USDT is not regulated, it sometimes deters institutions from using these cryptocurrencies.

USDT is highly popular owing to its high liquidity. Moreover, users can use it for a diverse range of trading options depending on their needs. On the other hand, USDC has a solid reputation for its reserve management. The fact that it adheres to appropriate rules increases the trust level for users.  

The table captures the chief differences between the digital formats in a comprehensible manner.

Final Words

The mounting regulatory pressure is most likely to redefine the future of USDT and USDC. Both positive and negative effects may arise due to developments in the regulatory landscape. Some of the major impacts that have been identified in relation to USDT include higher transparency, expansion of USDT at the global level, and heightened regulatory investigations.

Regulatory pressure may also shape the future of USDC by contributing to better regulatory alignment and higher institutional adoption. However, concerns relating to freezing may also arise for users. As the impact of regulatory pressure may be diverse for USDT and USDC, it is essential to keep a tab on the latest regulatory developments. The insight can certainly enable individuals as well as institutions to gain a better insight into the future trajectory of USDC and USDT. Learn about Stablecoin fundamentals to build a strong foundation and stay ahead of ongoing changes in the crypto ecosystem.

*Disclaimer: The article should not be taken as, and is not intended to provide any investment advice. Claims made in this article do not constitute investment advice and should not be taken as such. 101 Blockchains shall not be responsible for any loss sustained by any person who relies on this article. Do your own research!

Coinbase launched a second Stablecoin Bootstrap Fund to provide additional liquidity for the DeFi ecosystem via USDC.

According to an Aug. 12 announcement, the initiative will target protocols across multiple blockchains, starting with Aave, Morpho, Kamino, and Jupiter. Coinbase also invited protocols seeking liquidity to reach out to the exchange. 

The fund represents Coinbase’s renewed commitment to accelerating stablecoin adoption across mature and emerging protocols after its original 2019 Bootstrap Fund.

Time for growth

Coinbase’s first Bootstrap Fund helped establish marketplaces for USDC across blue-chip DeFi protocols such as Uniswap, Compound, and dYdX during the early stages of DeFi development.

Notably, USDC has become the leading stablecoin in DeFi with an estimated $8.9 billion in total value locked (TVL) and $2.7 trillion in annual on-chain transaction volume.

A Coinbase spokesperson explained in a note that the timing reflects current market conditions and growth opportunities:

“We’re at an inflection in adoption of onchain financial services. We saw how successful the first fund was in helping drive the initial wave of onchain stablecoin liquidity, and saw an opportunity to leverage Coinbase’s resources to further accelerate the interest and adoption that we’re seeing today.”

The record-breaking $40.7 billion in active DeFi loans represents one factor motivating the fund’s launch.

However, the spokesperson noted crypto-backed loans constitute “a prime example of this adoption and ongoing growth, but not the only reason” for the initiative.

The fund seeks to ensure deeper liquidity for stablecoins across the on-chain ecosystem, enabling users to access reliable rates across both established and emerging protocols.

Scaling over time

Coinbase plans to scale the fund over time and distribute liquidity across additional protocols and stablecoins beyond the initial four recipients. The launch can have a direct and positive impact on USDC usage in DeFi.

Adding more liquidity to the largest decentralized money markets will decrease the borrow rate for USDC on those venues, potentially making the stablecoin more interesting for on-chain leverage. The fund could also bring more money on-chain.

Lastly, the company expressed particular interest in collaborating with pre-launch teams or projects seeking to drive stablecoin growth from inception. 

The spokesperson concluded:

“We believe now is the time to build, and the Stablecoin Bootstrap Fund is here to inject liquidity in projects that can make an impact on the ecosystem no matter the size.”

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Coinbase unveiled a developer-focused wallet that automatically activates 4.1% rewards on USDC balances.

Called Coinbase Developer Platform (CDP) Embedded Wallets, the product is part of and is aimed at giving builders the same secure, scalable infrastructure that powers millions of Coinbase accounts, according to an August 5 announcement.

CDP Embedded Wallets support Ethereum Virtual Machine (EVM)-compatible chains and Solana, pairing “web2-style” logins via email, SMS, and OAuth with self-custody. 

Keys are secured in trusted execution environments (TEEs), while developers can define policies and plug into a unified toolkit for onramps, swaps, transfers, balances, staking, and rewards. 

Coinbase says developers can create brandable wallets in under 200ms, then monetize idle balances via the native 4.1% USDC rewards.

Early use cases include remittances, payment links, DeFi marketplaces, B2B payroll, creator payouts, and gaming with on-chain assets and free USDC sends on Base.

As part of the beta, Coinbase Onramp customers can use Embedded Wallets at no cost through September 30.

US stablecoin clarity propels movement

Coinbase ties the launch to fresh US policy momentum on stablecoins. The GENIUS Act cleared the House on July 17. It was signed into law on July 18, establishing the first federal framework for dollar-backed stablecoins and signaling regulatory support for “faster, cheaper” payments. 

The House also passed the CLARITY Act the same day, sending it to the Senate. The CLARITY Act would create a regulatory regime for digital assets other than stablecoins and give the CFTC sole authority over transactions in digital commodities.

With that backdrop, Coinbase says developers are moving quickly to build on stablecoin-native rails, and the wallet’s auto-rewarding USDC feature is positioned to ride that shift.

Coinbase frames CDP Embedded Wallets as a way to cut integration overhead, replacing stitched-together APIs with a single stack while keeping users in a non-custodial flow.

For builders, the proposition offers a faster path to market, complete with familiar logins, end-to-end onboarding, and built-in yield on idle USDC.

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