TLDR
- Hyperliquid’s AQAv2 deal could route up to 90% of USDC reserve yield to HYPE buybacks.
- USDC balances of $5B-$5.5B could generate $135M-$160M annually for repurchases.
- Circle and Coinbase are expected to stake $20M each as Hyperliquid validators.
- Bitwise will use 10% of BHYP management fees to hold HYPE on its balance sheet.
- 21Shares’ THYP ETF has recorded about $10.5M in cumulative net inflows.
Hyperliquid is negotiating a new stablecoin arrangement that could direct up to 90% of the reserve yield generated by USDC on its platform toward HYPE token buybacks, according to market reports.
The structure, known as Aligned Quote Asset v2, or AQAv2, would allow the perpetual futures exchange to capture part of the income earned from USDC reserves. That income is usually retained by stablecoin issuers and distribution partners.
Under the proposed model, USDC would remain a core quote asset within the Hyperliquid ecosystem. Circle would manage minting and redemption, while Coinbase would handle treasury deployment connected to USDC reserves.
AQAv2 Deal Links USDC Yield to HYPE Buybacks
Reports estimate that Hyperliquid currently holds about $5 billion to $5.5 billion in USDC across its platform. At current interest-rate levels, the proposed yield-sharing arrangement could provide about $135 million to $160 million annually for HYPE repurchases.
If USDC balances on Hyperliquid continue to rise, annual buyback funding could increase to a range of $300 million to $500 million, based on estimates cited in the reports. The final amount would depend on USDC supply, reserve yield, interest rates, and the operating terms of the agreement.
The revenue would be routed through Hyperliquid’s Assistance Fund, which is used to execute HYPE buybacks. The protocol has also established a $30 million repurchase authorization tied to the program.
Circle and Coinbase are also expected to stake $20 million each as validators on Hyperliquid. Their participation would connect both companies more closely to the network’s infrastructure as USDC seeks to remain the main settlement asset for trading activity.
Bitwise Plans to Hold HYPE From ETF Fees
The reported USDC yield arrangement comes as Bitwise Asset Management said it plans to use part of the management fees from its Bitwise Hyperliquid ETF, ticker BHYP, to accumulate HYPE on its balance sheet.
Bitwise said it will allocate 10% of the BHYP management fee to HYPE purchases. The firm said the decision is linked to Hyperliquid’s model, where about 99% of blockchain revenue is used to buy back and burn HYPE tokens.
The Bitwise Hyperliquid ETF began trading on the New York Stock Exchange on Friday. The product gives investors exposure to HYPE and staking rewards through a regulated fund structure.
21Shares launched a competing Hyperliquid ETF earlier in May under the ticker THYP. That fund has recorded about $10.5 million in cumulative net inflows, according to SoSoValue data cited in reports.
Hyperliquid has also become one of the largest fee-generating blockchain networks by recent weekly activity. Data cited by The Block showed the network generated nearly 40% of all blockchain fees last week, ahead of Ethereum and Solana.
HYPE Price Gains as Market Watches Buyback Flows
HYPE has traded above $44 after starting 2026 near $22, according to market data cited in the reports. Excluding stablecoins, the token is now listed among the top 10 crypto assets by market value, with a capitalization of more than $10.6 billion.
The proposed AQAv2 framework would add USDC reserve income to Hyperliquid’s existing buyback sources, including trading fees from its perpetual futures exchange. That gives investors a clear set of metrics to monitor: USDC balances, exchange volume, fee generation, reserve yields, and Assistance Fund purchases.
The structure also carries risks tied to rates and counterparty terms. If the Federal Reserve cuts interest rates, the expected reserve yield from USDC would decline. Any change in the Circle, Coinbase, and Hyperliquid arrangement could also alter the amount available for HYPE buybacks.
