Hyperdrive Raises $6M in Series A Funding to Build Stablecoin Infrastructure

– Stablecoins have become the established interest of Venture Capitalists in web3 now. With their total market cap surpassing $240 billion

Hyperdrive, a groundbreaking stablecoin infrastructure project built on the Hyperliquid blockchain, has announced the successful closure of its Series A funding round. The total amount raised is $6 million.

The investment was led by Hack VC and Arrington Capital, with participation from Amber, Delphi Ventures, Proof, Calado, and several other notable investors.

This funding milestone comes as HYPE, the native token of the blockchain on which Hyperdrive is being developed, has surpassed Sui in terms of market cap to become the 13th largest cryptocurrency.

Currently, HYPE is being traded at $37.96, setting a new all-time high.

Launching on May 27, Hyperdrive is a decentralized money market protocol that is focused on creating the yield infrastructure for stablecoins. It is being developed to provide yield to users who are holding stablecoins.

With Hyperdrive, users will be able to lend USDe to earn a lending APY. While the protocol is primarily focused on stablecoins, it will also enable users to borrow USDe against BTC, ETH, or HYPE.

In a recent X post, Hyperdrive highlighted that despite over $500M USDe in market supply, less than 1% of it is capital efficient.

To expand on this, according to data from Dunes, active stablecoin wallets have increased from 19.6 million in February 2024 to over 30 million in February 2025, showcasing a 53% year-over-year growth. On the other hand, the stablecoin supply has seen a 63% surge in just one year, reaching >245 billion.

Stablecoin deposits made by Hyperdrive users will be managed by Hyperliquidity Provider (HLP), which is the native Automated Market Maker (AMM) of Hyperliquid, functioning as a market-making vault.

The launch of Hyperdrive comes at a time when the broader crypto lending market is making a significant recovery from the lows witnessed in Q4 2022.

According to recent reports by Chainalysis, DeFi borrowing has seen an exponential increase of approximately 959%. Commencing from its lowest point in Q4 2022, it is now reaching $19.1 billion across 20 protocols and 12 blockchains by the end of 2024.

This remarkable surge has propelled borrowing to levels that surpass the previous peak attained during the 2020–2021 bull market.

In other relevant industry news, Hyperdrive's Series A funding further contributes to the broader narrative of VCs investing heavily in startups operating in the stablecoin and broader payments sector.

According to Crunchbase data, startups focused on stablecoins and payments have collectively raised over $297 million in 2025 alone. This marks a 214% increase compared to the same period in 2024. Among the key names in this domain are Ethena Labs, which develops AI-powered trading systems, receiving $75 million in Series C funding, and BVNK, a BaaS startup, which secured $48 million in Series B.

Additional notable startups in this domain include Plasma, Avalon Labs, and Blockport, which are making significant strides in their respective fields.