Stablecoins Are Taking Over

Stablecoins are revolutionizing money movement between individuals, institutions, and autonomous agents. These digital dollars offer programmability, convenience, and universal access to anyone with internet. Stripe CEO Patrick Collison calls stablecoins "room-temperature superconductors for financial services".

With over a decade of history - predating even Ethereum - stablecoins represent one of crypto's most battle-tested applications. Today's market shows over $250 billion in supply and over $3 trillion in volume, yet this is just the beginning.

Stablecoins will inevitably disrupt global payment networks through key advantages:

• Faster, cheaper transfers: Pennies in cost, seconds in settlement on chains like Solana or Base.
• Global 24/7 accessibility: Available anywhere, anytime.
• Programmability: Rules enforceable by code.

PayPal, Stripe, and even JPMorgan Chase are integrating or launching stablecoins. Meanwhile, regulatory frameworks are developing rapidly with the GENIUS Act passing the US Senate, Treasury support for stablecoins as reserve currency tools, and established frameworks in the EU and Japan.

Stablecoins are evolving from a crypto experiment into core financial infrastructure. As adoption accelerates, universal accessibility becomes critical.

The Stablecoins Must Flow

Between the emergence of all the new L1s, L2s, and app-chains in recent years, stablecoins are increasingly distributed across different chains.

Users want a stable unit of exchange they can transfer and use wherever they go. App developers need stable liquidity they can build compelling products around. Stablecoins are critical infrastructure for every chain and whoever can deliver it becomes critical infrastructure.

How Do Stablecoins Move Around Today?

At first glance, stablecoin bridging follows a simple pattern across all solutions: users deposit tokens on one chain and receive them on another.

However, the underlying mechanics - how stablecoins actually move between chains - often varies in practice. Different bridges may lock, burn, or swap liquidity arouund to transfer stablecoins. Because these differences can affect fees, transfer speeds, and the overall user experience, it helps to understand how stablecoins actually move between chains.

Messaging Protocols

One common way stablecoins are bridged is through messaging protocols. Transfers are facilitated by passing messages between chains. These messages simply communicate when a user has deposited stablecoins to bridge on the source chain, which allows the corresponding amount to be minted on the destination chain.

On the source chain, messaging protocols can either lock or burn tokens:

• Lock & Mint:
  • Stablecoins are first deposited into a smart contract, or “locked”, on the origin chain.
  • A message is passed to the destination chain.
  • New stablecoins are minted on the destination chain.

• Burn/Mint:
  • Stablecoins are first “burned” on the source chain.
  • A message is passed to the destination chain.
  • New stablecoins are minted on the destination chain.

Intents

Another approach to stablecoin bridging is through intent-based bridges. Users specify their desired outcome, or "intent", to transfer stablecoins. A solver then fulfills the user's request  and delivers the stablecoins to the destination chain. Solvers may use their own stablecoin liquidity or route liquidity from other sources, but they all need to settle their fulfilled intents onchain in order to receive their payment.

Liquidity Pools

Stablecoins can also be bridged via liquidity-based bridges. These bridges facilitate transfers by using preexisting liquidity pools on the destination chain. Liquidity providers deposit assets (like stablecoins) into these pools. These assets are then used for bridging stablecoins, and liquidity providers earn fees whenever their liquidity is used for bridging.

When users bridge stablecoins, they deposit their tokens into a pool on the source chain. In exchange, an equivalent amount is withdrawn from a liquidity pool on the destination chain.

How Are Stablecoins Issued Across Chains?

Stablecoin issuance has evolved as new chains and ecosystems have emerged. Initially, wrapped stablecoins allowed tokens to exist on chains not natively supported by issuers. Over time, issuers began deploying native stablecoins directly on selected chains. However, because native issuance can take time, purpose-built interchain stablecoins have emerged as an alternative in recent months.

Wrapped Stablecoins

Wrapped stablecoins are representative versions that are minted when a stablecoin doesn't natively exist on a particular chain. Users deposit stablecoins on a source chain and receive an equivalent amount of the wrapped stablecoin on the destination chain. The wrapped stablecoin is then backed by the collateral stablecoin that remains locked on the source chain.

Native Stablecoins

Native stablecoins refer to stablecoins that issuers - like Tether (USDT) or Circle (USDC) - mint and redeem directly on a specific chain. The bridging flow is the same: users deposit stablecoins on a source chain, and receive an equivalent amount on the destination chain. The key principle is that the smart contracts which facilitate the stablecoin transfers are owned and managed by the stablecoin issuers themselves, which makes the stablecoins “natively issued”.

Interchain Stablecoins

Interchain stablecoins represent a new emerging class of interoperable stablecoins that mirror underlying stablecoins like USDT. They combine the flexibility of wrapped tokens with the reliability of native-issuance models to create a single stablecoin that is easily transferable across multiple chains. Their value is backed by collateral denominated in the underlying stablecoin on that stablecoin's native chain. Unlike wrapped tokens, however, interchain stablecoins are composable across multiple chains—functioning as a single transferable stablecoin throughout the ecosystem.

Accelerating Stablecoin Expansion With Hyperlane

Evidently, there is no one-size-fits-all solution when it comes to bridging stablecoins. Different approaches come with different tradeoffs, and builders are constantly improving and innovating new solutions.

How can asset issuers, app developers, chain developers, and other builders access and own interchain stablecoin liquidity today, in a way that keeps them ready and adaptable to future innovation? That's where Hyperlane comes in.

Hyperlane is an open framework that helps accelerate the flow of stablecoins. Its core function is message passing, but because it is modular, it can be configured and optimized for stablecoin-specific use cases:

• Flexible security for stablecoin bridging with Hyperlane's ISMs.
• Customizable stablecoin bridging with Warp Routes.
• Permissionless to scale and expand stablecoin distribution to new chains.
• Broad, multi-VM coverage to maximize stablecoin distribution from day one.

Hyperlane already powers stablecoin expansion for numerous teams and industry leaders today:

USDhl: The Hyperliquid-Native Stablecoin

USDhl is the new native stablecoin for the Hyperliquid ecosystem, built in collaboration between Felix Labs and M0, and powered by Hyperlane.

Today, USDC is the de-facto collateral asset for trading on Hyperliquid. Billions of USDC currently sits in the Hyperliquid bridge, but idly - meaning it does not earn yield, nor generate any value back to the Hyperliquid ecosystem.

This motivated the design for USDhl: a native Hyperliquid stablecoin that uses revenue to buy back HYPE and distribute it to the Hyperliquid community. Designed to be integrated into Hyperliquid’s trading ecosystem, USDhl can be used for trading, lending, providing liquidity, and collateral for future DeFi applications on Hyperliquid.

Every USDhl is backed 1:1 by short‑term U.S. Treasuries through M0, and uses Hyperlane to lock on Ethereum and issue on Hyperliquid.

Users simply deposit the M stablecoin on Ethereum, and receive USDhl on the Hyperliquid L1. More specifically, when M is deposited on Ethereum, Hyperlane sends a message to the Hyperliquid L1, where an equivalent amount of USDhl is then minted for the user.

Mint USDhl ⏩ http://usefelix.xyz/usdhl

USDN: Noble Dollar

USDN is a new yield-bearing stablecoin from Noble backed by short-term US Treasuries through M0. With Hyperlane now integrated on Noble, $100m+ USDN can now expand to hundreds of new chains and applications connected by Hyperlane, including the EVM ecosystem. By integrating USDN, builders get access to yield that they can distribute to their users in a customizable, programmatic and transparent way.

In their latest v10 release, Noble has:

• Added a Hyperlane module for interchain messaging.
• Integrated the Hyperlane Warp module for interchain stablecoin transfers via Hyperlane.
• Upgraded the Dollar module to enable USDN yield distribution across Hyperlane routes.

Yield is generated through the M stablecoin on Ethereum, which itself accrues yield from short-term US Treasuries. From there, it is bridged over to Noble where it is minted as USDN. From Noble, USDN can be bridged to any Hyperlane-connected chain, its yield distributed however integrators see fit. For Hyperlane-supported networks, USDN distributes yield proportionally based on collateral balances.

Learn more about USDN .

OpenUSDT

OpenUSDT (oUSDT) is an interchain stablecoin designed to bring stablecoin to any chain, launched as an open-source initiative by collaborators from Hyperlane, Chainlink, and Celo.

It is backed 1:1 by native USDT locked on Ethereum and Celo, and uses Hyperlane’s messaging framework to mint oUSDT.  Because oUSDT is built on Hyperlane, it is:

• Natively Multichain: oUSDT is designed to be accessible to users wherever they are.
• Permissionless To Expand: oUSDT can be permissionlessly expanded to wherever stablecoin liquidity is needed.
• Future-Proof for Native USDT: oUSDT lets chains easily transition to native USDT once it is live on their chain.

Live on 12 chains today, users can trade, earn yield, and bridge stablecoin liquidity wherever they need to go with openUSDT.

Learn more ⏩ openusdt.xyz

TaoFi: The Gateway To Bittensor

As the core bridging infrastructure for TaoFi, Hyperlane enables USDC bridging from Solana, Ethereum, and Base to the Bittensor EVM. Using Warp Routes - Hyperlane’s token bridging framework - bridged USDC is locked on the source chain, and an equivalent amount of synthetic USDC is minted on Bittensor EVM. From there, users can swap, provide liquidity, and explore the broader Bittensor ecosystem through TaoFi.

USDC bridging is just the first step. By combining Hyperlane’s Warp Route and Interchain Account frameworks with Sturdy’s Subnet 10 liquidity infrastructure, TaoFi is building towards a novel user experience: single-swap access to Bittensor. With Hyperlane’s flexible and permissionless nature, access to alpha tokens can easily be expanded to new chains and assets over time as needed. Users will soon be able to ****buy native alpha tokens with a single swap from their preferred wallet, chain, or asset.

Bridge to Bittensor ⏩ https://www.taofi.com/bridge

tUSD: The First Eclipse-Native Yield Stablecoin

Hyperlane powers tUSD, the first yield-generating stablecoin on Eclipse.  Users deposit USDC on Ethereum to mint tUSD on Eclipse. Under the hood, when USDC is deposited, Hyperlane sends a messages to Eclipse to mint tUSD.

tUSD is backed by the Janus Henderson Anemoy Treasury Fund (JRTSY), a leading tokenized fund with over $440 million in TVL.

Users deposit USDC on Ethereum to mint tUSD on Eclipse. Under the hood, when USDC is deposited, Hyperlane sends a messages to Eclipse to mint tUSD.

tUSD: Eclipse-native yield bearing stablecoin.

Hyperlane has proudly supported Eclipse since day one, with over $$ in bridging volume as well as powering core ecosystem assets like tETH. And now, Hyperlane is powering tUSD, the first yield-bearing stablecoin on Eclipse.

Mint tUSD ⏩ https://app.eclipse.xyz/mint-tusd

Eco Routes: Fast Stablecoin Bridging Powered by Hyperlane

Hyperlane powers settlement for Eco Routes, Eco’s intent-based stablecoin bridging infrastructure. To date, Hyperlane has helped settle over $200 million in bridged stablecoin volume through Eco Routes.

To bridge stablecoins using Eco, users request a transfer by expressing an intent, and a network of Solvers steps in to fulfill their intent on-demand. Once the user receives their stablecoins, the Solver then settles their transaction - where Hyperlane comes in.

Hyperlane Routes use Hyperlane’s message passing framework to help Solvers in the Eco network settle their transactions quickly and efficiently. When a solver submits a proof, a smart contract called the Hyperprover checks that the message is authentic and marks the intent as proven. Once verified, the Solver can collect their payment.

Learn more in our latest case study.

Stablesend today on Eco Portal ⏩ https://portal.eco.com/

Whether its supporting new interchain stablecoins, expanding stablecoins to new chains and ecosystems, or providing secure settlement for intent-based stablecoin bridges, Hyperlane equips builders with the tools they need to make the stablecoins flow.

Looking Ahead

The evolution of stablecoins, from crypto-native instruments to a new layer of modern-day global financial infrastructure, is exciting to witness. Beyond enterprise solutions and global payments, there’s growing interest around stablecoins as core financial infrastructure for AI agents. The groundwork for a truly internet-native financial system is being laid out in real time.

However, in order to realize this vision, a simple truth remains: stablecoins need to be universally accessible, to anyone anywhere. The first step is getting stablecoins to every onchain ecosystem.

Therefore, the underlying infrastructure- the rails on which stablecoins flow - is critical. Open, permissionless, and modular interoperability solutions are key to getting there and ensuring that the stablecoins can, and will, continue to flow.

Stablecoin expansion.

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About Hyperlane

Hyperlane is the open interoperability framework. It empowers developers to connect anywhere onchain and build applications that can easily and securely communicate between multiple blockchains. Importantly, Hyperlane is fully open-source and always permissionless to build with.