Grayscale Reveals Hyperliquid's Earnings from Coinbase Interest Even in Bear Market

According to Grayscale research published on October 30, Coinbase remits 90% of the interest earned on roughly $6 billion in customer deposits to Hyperliquid. That payment is made each month, regardless of whether any trading happens.

This cheque is one factor behind Hyperliquid—a blockchain platform for leveraged wagers on asset prices—earning about $105 million in September, nearly matching its year-ago figure even amid a cryptocurrency decline.

Why Coinbase Decided to Pass Along the Interest

The agreement began in May, when Coinbase assumed the role of treasury partner for USDC, a stablecoin pegged to the US dollar, on Hyperliquid. BeInCrypto reported at that time that the partnership could transform stablecoin revenue distribution. Grayscale's numbers now reveal the extent.

Stablecoin deposits are invested in US Treasury bills, so the interest is actual cash. Grayscale describes this revenue as Hyperliquid's most consistent because it requires no trading activity.

Coinbase also secured benefits. USDC replaced USDH as Hyperliquid's dominant trading stablecoin; USDH was created to keep interest within Hyperliquid. Coinbase retains the remaining 10% and the deposits.

Wall Street had already factored in the impact. By July, Mizuho and JPMorgan had become pessimistic about Circle, USDC's issuer, and JPMorgan lowered its Coinbase projections, citing strain on USDC's economics.

JPMorgan reduced its earnings forecasts for Circle and Coinbase after their Hyperliquid agreement, pointing to erosion in USDC economics. Under the terms, Coinbase sends 90% of USDC reserve yields on the platform to Hyperliquid.

— Kyledoops (@kyledoops), July 14, 2026

Hyperliquid's Other Revenue Sources

Grayscale reports that in mid-2025, Hyperliquid's internal crypto trading fees accounted for over 90% of its earnings. By September, that proportion had declined to 64%. External companies now list futures on silver, oil, and pre-IPO equities, retaining as much as 50% of the fees.

“Hyperliquid’s outsourced revenue model hit $38M last month and attracted major institutional partners,” Grayscale stated.

Grayscale offers the Grayscale Hyperliquid Staking ETF (HYPG) and notes that it may hold the assets it tracks.

Grayscale's outsourced revenue model generated $38M last month and brought in significant institutional partners. ICE, the owner of the NYSE, is teaming up with TradeX to create perpetual futures on Hyperliquid in the US.

Outsourced revenue streams:
1. Deployer Perps (HIP-3): Third…

— Grayscale (@Grayscale), October 30, 2026

Who Receives the Cash Ultimately?

An earlier Grayscale report indicates that 99% of Hyperliquid's fees are directed to a fund that purchases and burns its HYPE token, resembling a stock repurchase. Coinbase's interest payments supply that fund.

This week, the NYSE's owner and Kraken's parent company both took steps to bring Hyperliquid to US-based traders, a development BeInCrypto reported as HYPE token rallied on Wednesday.

A influx of additional US deposits would enlarge the interest payment. Grayscale's memo does not estimate the value of Coinbase's gains from the deal.