Hyperliquid Users Borrow $269 Million Against HYPE on Day One: What It Means for the Token

Hyperliquid just turned its own token into collateral, and the lending rules give HYPE holders more borrowing power than Bitcoin backers get. That unusual decision carries a catch that could accelerate losses when prices fall.

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On September 18, 2026, the Hyperliquid lending platform went live, allowing users to borrow dollar stablecoins USDC and USDT by using HYPE (CRYPTO:HYPE) or Bitcoin (CRYPTO:BTC) as collateral. On its first day, a staggering $269 million was borrowed, Hyperliquid co-founder Jeff Yan confirmed.

The launch effectively turned HYPE into collateral, pushing its price to a record near $93 that day. As of September 24, HYPE is trading at $94, surpassing that initial high and up 18.7% over the week. So, does this new lending feature change HYPE’s nature as an asset? What implications does this have for its holders?

Hyperliquid Now Lends USDC and USDT Against HYPE and Bitcoin

Hyperliquid has introduced a money market within HyperCore, which powers its exchange. In this model, some users lend stablecoins while others borrow them. A borrower deposits HYPE or Bitcoin as collateral, borrows USDC or USDT, and pays interest to the lenders. The interest rate fluctuates based on utilization, meaning borrowing becomes more expensive as the pool fills.