{"id":527235,"date":"2025-09-11T16:30:47","date_gmt":"2025-09-11T11:00:47","guid":{"rendered":"https:\/\/ambcrypto.com\/?p=527235"},"modified":"2025-09-11T13:30:57","modified_gmt":"2025-09-11T08:00:57","slug":"were-funding-our-competitor-solana-eyes-sol-backed-stablecoin","status":"publish","type":"post","link":"https:\/\/ambcrypto.com\/were-funding-our-competitor-solana-eyes-sol-backed-stablecoin\/","title":{"rendered":"\u2018We\u2019re funding our competitor\u2019 &#8211; Solana eyes SOL-backed stablecoin"},"content":{"rendered":"<h2><span style=\"font-weight: 400;\">\u00a0<\/span><span style=\"font-weight: 400;\">Key Takeaways<\/span><\/h2>\n<p><em><span style=\"font-weight: 400;\">Hyperliquid\u2019s push for USDH has got other chains like Solana thinking of making a similar move, instead of helping \u2018fund\u2019 Coinbase\u2019s Base by relying on USDC. Will Circle handle the pressure?\u00a0<\/span><\/em><\/p>\n<hr \/>\n<p><a href=\"https:\/\/ambcrypto.com\/category\/solana-news\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Solana [SOL]<\/span><\/a><span style=\"font-weight: 400;\"> leaders now want a new stablecoin aligned to its ecosystem, thanks to the eye-opening bidding wars for a <a href=\"https:\/\/ambcrypto.com\/category\/altcoins-news\/\" target=\"_blank\" rel=\"noopener\">Hyperliquid [HYPE<\/a>]-aligned USDH issuer.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For those unfamiliar, Hyperliquid <a href=\"https:\/\/ambcrypto.com\/hyperliquid-stablecoin-battle-raises-backroom-deal-allegations-why\/\" target=\"_blank\" rel=\"noopener\">plans<\/a> to replace USDC with its native stablecoin, USDH.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The platform plans to allocate over 90% of the yield generated from USDH reserves toward value accrual, primarily through HYPE token buybacks and other ecosystem-enhancing mechanisms<\/span><\/p>\n<p><span style=\"font-weight: 400;\">And top issuers are fighting for this deal. So, why not do the same for Solana? Well, that\u2019s the proposal Mert Mumtaz, founder of Solana-based Helius Labs, <\/span><a href=\"https:\/\/x.com\/0xMert_\/status\/1965788753840295957\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">floated<\/span><\/a><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<blockquote><p><span style=\"font-weight: 400;\">\u201cWarming up to the idea that Solana should enshrine a stablecoin. 50% burn of the yield goes back to burning SOL. Solana is currently funding its biggest competitor on a commodity!!!\u201d<\/span><\/p><\/blockquote>\n<figure id=\"attachment_527236\" aria-describedby=\"caption-attachment-527236\" style=\"width: 602px\" class=\"wp-caption aligncenter\"><a href=\"https:\/\/ambcrypto.com\/wp-content\/uploads\/2025\/09\/Screenshot-2025-09-11-083800.png\"><img decoding=\"async\" class=\"size-full wp-image-527236\" src=\"https:\/\/ambcrypto.com\/wp-content\/uploads\/2025\/09\/Screenshot-2025-09-11-083800.png\" alt=\"Solana\" width=\"602\" height=\"434\" srcset=\"https:\/\/ambcrypto.com\/wp-content\/uploads\/2025\/09\/Screenshot-2025-09-11-083800.png 602w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2025\/09\/Screenshot-2025-09-11-083800-300x216.png 300w\" sizes=\"(max-width: 602px) 100vw, 602px\" \/><\/a><figcaption id=\"caption-attachment-527236\" class=\"wp-caption-text\">Source: X<\/figcaption><\/figure>\n<h2><strong>USDC at crossroads? <\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">Mumtaz <a href=\"https:\/\/x.com\/0xMert_\/status\/1965802049360253101\" target=\"_blank\" rel=\"noopener\">noted<\/a> that SOL-aligned digital asset treasuries (DATs) could emerge as competitors to existing stablecoin issuers, capturing yield that would otherwise flow to Coinbase\u2019s Base chain.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It\u2019s important to highlight that Coinbase receives roughly 50% of Circle\u2019s USDC revenue, including interest earned.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Currently, USDC dominates Solana\u2019s stablecoin market, accounting for 70% of supply with $8.5 billion in circulation, according to <a href=\"https:\/\/defillama.com\/stablecoins\/Solana\" target=\"_blank\" rel=\"noopener\">DeFiLlama<\/a>.<\/span><\/p>\n<figure id=\"attachment_527238\" aria-describedby=\"caption-attachment-527238\" style=\"width: 2560px\" class=\"wp-caption aligncenter\"><a href=\"https:\/\/ambcrypto.com\/wp-content\/uploads\/2025\/09\/solana_stablecoins_bars.png\"><img decoding=\"async\" class=\"size-full wp-image-527238\" src=\"https:\/\/ambcrypto.com\/wp-content\/uploads\/2025\/09\/solana_stablecoins_bars.png\" alt=\"Solana\" width=\"2560\" height=\"1460\" srcset=\"https:\/\/ambcrypto.com\/wp-content\/uploads\/2025\/09\/solana_stablecoins_bars.png 2560w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2025\/09\/solana_stablecoins_bars-300x171.png 300w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2025\/09\/solana_stablecoins_bars-1024x584.png 1024w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2025\/09\/solana_stablecoins_bars-768x438.png 768w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2025\/09\/solana_stablecoins_bars-1536x876.png 1536w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2025\/09\/solana_stablecoins_bars-2048x1168.png 2048w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2025\/09\/solana_stablecoins_bars-1200x684.png 1200w\" sizes=\"(max-width: 2560px) 100vw, 2560px\" \/><\/a><figcaption id=\"caption-attachment-527238\" class=\"wp-caption-text\">Source: DeFiLlama\/AMBCrypto<\/figcaption><\/figure>\n<p><span style=\"font-weight: 400;\">At 4% interest rate, that\u2019s over $340 million yield on USDC circulation on an annualized basis. But all the yield is split between Coinbase and Circle, and not Solana.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Interestingly, Solana Co-Founder, Anatoly Yakovenko, and VC Multicoin Capital supported Mumtaz&#8217;s idea.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In fact, Tushar Jain, founder of Multicoin Capital, <\/span><a href=\"https:\/\/x.com\/TusharJain_\/status\/1965856128581120229\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">said<\/span><\/a><span style=\"font-weight: 400;\"> both Solana and <a href=\"https:\/\/ambcrypto.com\/category\/ethereum-news\/\">Ethereum [ETH]<\/a> should go the Hyperliquid way.\u00a0<\/span><\/p>\n<blockquote><p><span style=\"font-weight: 400;\">\u201cWhy should Circle keep all of the interest revenue from USDC on Solana? Fwiw, Ethereum should do this too. It will massively drive up Ethereum&#8217;s REV and drive buying pressure on ETH.\u201d<\/span><\/p><\/blockquote>\n<p><span style=\"font-weight: 400;\">However, <\/span><a href=\"https:\/\/x.com\/SGJohnsson\/status\/1965839062687957037\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">critics<\/span><\/a><span style=\"font-weight: 400;\"> pointed out that the move could escalate friction with L1s, DATs, and force apps to opt for their own chains to avoid sharing the yield. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">In response, Yakovenko <\/span><a href=\"https:\/\/x.com\/crispheaney\/status\/1965858860901495098\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">quipped<\/span><\/a><span style=\"font-weight: 400;\"> that the market can figure that out.\u00a0<\/span><\/p>\n<figure id=\"attachment_527242\" aria-describedby=\"caption-attachment-527242\" style=\"width: 590px\" class=\"wp-caption aligncenter\"><a href=\"https:\/\/ambcrypto.com\/wp-content\/uploads\/2025\/09\/Screenshot-2025-09-11-091402.png\"><img decoding=\"async\" class=\"size-full wp-image-527242\" src=\"https:\/\/ambcrypto.com\/wp-content\/uploads\/2025\/09\/Screenshot-2025-09-11-091402.png\" alt=\"Solana \" width=\"590\" height=\"357\" srcset=\"https:\/\/ambcrypto.com\/wp-content\/uploads\/2025\/09\/Screenshot-2025-09-11-091402.png 590w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2025\/09\/Screenshot-2025-09-11-091402-300x182.png 300w\" sizes=\"(max-width: 590px) 100vw, 590px\" \/><\/a><figcaption id=\"caption-attachment-527242\" class=\"wp-caption-text\">Source: X<\/figcaption><\/figure>\n<p><span style=\"font-weight: 400;\">Notably, Hyperliquid is the third-largest market for USDC after Solana and Ethereum. Hence, if USDC loses the market share in these networks, it could impact even its stock, CRCL.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In fact, the CRCL stock price has dropped 16% since Hyperliquid fronted the USDH stablecoin. It remains to be seen whether Solana will officially take up the recent proposal and affect CRCL further.\u00a0<\/span><\/p>\n<figure id=\"attachment_527243\" aria-describedby=\"caption-attachment-527243\" style=\"width: 1950px\" class=\"wp-caption aligncenter\"><a href=\"https:\/\/ambcrypto.com\/wp-content\/uploads\/2025\/09\/CRCL_2025-09-11_09-37-10.png\"><img decoding=\"async\" class=\"size-full wp-image-527243\" src=\"https:\/\/ambcrypto.com\/wp-content\/uploads\/2025\/09\/CRCL_2025-09-11_09-37-10.png\" alt=\"Solana \" width=\"1950\" height=\"1147\" srcset=\"https:\/\/ambcrypto.com\/wp-content\/uploads\/2025\/09\/CRCL_2025-09-11_09-37-10.png 1950w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2025\/09\/CRCL_2025-09-11_09-37-10-300x176.png 300w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2025\/09\/CRCL_2025-09-11_09-37-10-1024x602.png 1024w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2025\/09\/CRCL_2025-09-11_09-37-10-768x452.png 768w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2025\/09\/CRCL_2025-09-11_09-37-10-1536x903.png 1536w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2025\/09\/CRCL_2025-09-11_09-37-10-1200x706.png 1200w\" sizes=\"(max-width: 1950px) 100vw, 1950px\" \/><\/a><figcaption id=\"caption-attachment-527243\" class=\"wp-caption-text\">Source: CRLC, TradingView<\/figcaption><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>Will CRLC stock price decline extend as more chains gang up against USDC&#8217;s extractive yield? <\/p>\n","protected":false},"author":79,"featured_media":527247,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"om_disable_all_campaigns":false,"footnotes":""},"categories":[31,66,3,4,6376,5825,20],"tags":[],"class_list":["post-527235","post","type-post","status-publish","format-standard","has-post-thumbnail","category-altcoins-news","category-new-news","category-news","category-social","category-solana-news","category-stablecoins","category-trading-view"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v28.0 (Yoast SEO v28.4) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>\u2018We\u2019re funding our competitor\u2019 - Solana eyes SOL-backed stablecoin - AMBCrypto<\/title>\n<meta name=\"description\" content=\"Solana insiders are now advocating for a stablecoin that could keep part of the yield within the ecosystem\" \/>\n<meta name=\"robots\" content=\"index, follow, max-image-preview:large\" \/>\n<link rel=\"canonical\" href=\"https:\/\/ambcrypto.com\/were-funding-our-competitor-solana-eyes-sol-backed-stablecoin\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"\u2018We\u2019re funding our competitor\u2019 - Solana eyes SOL-backed stablecoin - AMBCrypto\" \/>\n<meta property=\"og:description\" content=\"Will CRLC stock price decline extend as more chains gang up against USDC&#039;s extractive yield?\" \/>\n<meta property=\"og:url\" content=\"https:\/\/ambcrypto.com\/were-funding-our-competitor-solana-eyes-sol-backed-stablecoin\/\" \/>\n<meta property=\"og:site_name\" content=\"AMBCrypto\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/cryptoamb\" \/>\n<meta property=\"article:published_time\" content=\"2025-09-11T11:00:47+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/ambcrypto.com\/wp-content\/uploads\/2025\/09\/Solana-USDC-stablecoin.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1920\" \/>\n\t<meta property=\"og:image:height\" content=\"1080\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Benjamin Njiri\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@CryptoAmb\" \/>\n<meta name=\"twitter:site\" content=\"@CryptoAmb\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Benjamin Njiri\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"AnalysisNewsArticle\",\"@id\":\"https:\\\/\\\/ambcrypto.com\\\/were-funding-our-competitor-solana-eyes-sol-backed-stablecoin\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/ambcrypto.com\\\/were-funding-our-competitor-solana-eyes-sol-backed-stablecoin\\\/\"},\"author\":{\"name\":\"Benjamin Njiri\",\"@id\":\"https:\\\/\\\/ambcrypto.com\\\/#\\\/schema\\\/person\\\/553bc0a52388cbc0397b81684d514809\"},\"headline\":\"\u2018We\u2019re funding our competitor\u2019 &#8211; 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