Hyperliquid Makes Money in a Bear Market Without Anyone Trading, Grayscale Says

Source Beincrypto

Coinbase hands Hyperliquid 90% of the interest earned on about $6 billion of customer deposits, according to Grayscale research published on October 30. The money arrives every month whether anyone trades or not.

That cheque is one reason Hyperliquid, a blockchain-based exchange for leveraged bets on prices, made about $105 million in September, almost the same as a year earlier despite a crypto downturn.

Why Coinbase Agreed to Give the Money Away

The arrangement dates to May, when Coinbase became the treasury partner for USDC, a dollar stablecoin, on Hyperliquid. BeInCrypto reported then that the deal could reshape stablecoin revenue sharing. Grayscale’s figures now show the scale.

Stablecoin deposits are invested in US Treasury bills, so the interest is real cash. Grayscale calls it Hyperliquid’s steadiest income because it does not depend on trading.

Coinbase got something too. USDC became Hyperliquid’s main trading currency, displacing USDH, a rival stablecoin built to keep that interest inside Hyperliquid. Coinbase keeps the other 10% and the deposits themselves.

Wall Street had already counted the cost. In July, Mizuho and JPMorgan turned bearish on Circle, USDC’s issuer, and JPMorgan cut its Coinbase estimates, citing pressure on USDC economics.

Where the Rest of Hyperliquid’s Money Comes From

In mid-2025, Hyperliquid’s own crypto trading fees were over 90% of revenue, Grayscale says. By September, that was 64%. Outside firms now list futures on silver, oil, and pre-IPO shares, keeping up to half the fees.

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

The firm sells the Grayscale Hyperliquid Staking ETF (HYPG) and discloses it may hold the assets it covers.

Who Ends Up Holding the Cash

Grayscale’s earlier report says 99% of Hyperliquid’s fees go to a fund that buys and burns its HYPE token, much like a stock buyback. Coinbase’s interest payments feed that fund.

This week, the New York Stock Exchange’s owner and Kraken’s parent both moved to bring Hyperliquid to US traders, a push BeInCrypto covered as HYPE rallied on Wednesday.

More US deposits would mean a bigger interest cheque. Grayscale’s note does not put a value on Coinbase’s side of the trade.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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