Hyperliquid Foundation Earmarks $10M in Grants for USDH Sunset

Hyperliquid News

The Hyper Foundation, the organization supporting Hyperliquid (HYPE), has set aside roughly $10 million in grants to cushion developers affected by the wind-down of USDH, its dollar-pegged native stablecoin. Announced on June 29, the program covers teams building on HyperCore, the on-chain perpetual and spot order book, and HyperEVM, the general-purpose smart-contract layer. Funding splits into migration grants for teams moving USDH-denominated markets to Circle’s USDC, and sunset grants for those retiring USDH-dependent products entirely. Recipients must commit to completing their transition or shutdown by the end of July, with HIP-1 and HIP-3 deployers sized against their original auction deployment costs.

The USDH retirement is echoing across the broader stablecoin market. A new consortium token, Open USD (OUSD), launched this week drawing directly on the USDH revenue-sharing blueprint that Hyperliquid pioneered. Backed by a roster spanning Visa, Mastercard, BlackRock, Coinbase, Ripple and more than 140 partners, OUSD promises to distribute most of the interest earned on its US Treasury reserves to members rather than retaining it. The design lands as a direct challenge to Circle, whose shares collapsed 17% on Tuesday, erasing $3.3 billion in market value in under seven hours as investors priced in the competitive threat to USDC economics.

At the center of Hyperliquid’s migration is AQAv2, the Aligned Quote Asset v2 specification, which the network activated for USDC. AQAv2 shares the bulk of cost-adjusted reserve yield generated by stablecoins circulating on Hyperliquid back to the protocol. Under the arrangement, Coinbase serves as USDC treasury deployer while Circle acts as technical deployer, handling CCTP and native cross-chain infrastructure. On-chain governance passed the activation, with USDC reserve-yield sharing scheduled to begin in August. The move rewires how stablecoin economics flow through the venue, aligning issuer revenue with the exchange rather than concentrating it off-platform.

Longer-term conviction in the token remains visible in fresh research. A widely circulated analytical report from Multicoin Capital models a HYPE price of $319 by 2028, a valuation resting on continued growth in Hyperliquid’s perpetual-futures volume, expanding HIP-3 market deployments and the compounding effect of reserve-yield capture. The thesis frames HYPE less as a governance altcoin and more as a claim on a growing on-chain exchange’s cash flows. While such multi-year targets carry heavy assumptions, the report underscores how institutional analysts are increasingly treating Hyperliquid as a structural competitor to centralized derivatives venues rather than a speculative curiosity.

Regulated access to HYPE is widening in parallel. 21Shares launched weekly and monthly options on its spot Hyperliquid (HYPE) exchange-traded fund, giving investors listed instruments to hedge or express directional views without holding the token directly. The options layer arrives as spot HYPE ETF infrastructure matures, extending the toolkit already available for larger assets to a token that only debuted in 2025. Standalone derivatives on a single-asset altcoin ETF remain rare, and their arrival signals that market makers see sufficient liquidity and demand to support two-sided pricing across multiple expiries on Hyperliquid exposure.

The listing momentum extends further up the institutional stack. Grayscale’s staking-enabled spot Hyperliquid (HYPE) ETF began trading on Nasdaq, letting shareholders gain exposure while the underlying tokens earn staking rewards inside the fund wrapper. The debut was tempered by a regulatory note abroad: Singapore’s Monetary Authority added Hyperliquid to an investor-alert list, a disclosure the protocol characterized as a caution rather than a prohibition on access. Together the two developments capture Hyperliquid’s current position, courting deep institutional distribution in the United States while navigating tighter scrutiny from regulators in other jurisdictions.

Our reading of the tape puts HYPE at $63.46, down 1.46% on the day with a $14.1 billion market cap. COINOTAG’s proprietary 42-indicator composite scoring engine rates the $60.74 support at 77/100 — its strongest reading — anchored by the confluence of the Fibonacci 0.382 retracement, the S1 pivot and the 50-day SMA, while overhead the $65.57 resistance scores 56/100 on the R1 pivot and 20-day SMA. Derivatives data shows a slightly negative funding rate of -0.0061% against $1.54 billion in open interest, a mildly short-leaning posture. With RSI neutral at 49 and an Extreme Fear reading of 11/100, a defense of $60.74 keeps the uptrend intact; a decisive break below invalidates the bullish thesis toward the $57.56 shelf.