At A Glance
Stargate Hydra turns token distribution into an on-demand service, enabling access to compliant, composable and canonical assets. It gives asset issuers day-one access to new markets, with internet-scale liquidity and zero infrastructure overhead.
In April, nearly 40% of USDC transfer volume on Stargate, moved through Stargate’s Bridged USDC. Just four months earlier, that figure was 2%. This growth coincided with Stargate’s rollout to 28 additional chains, adding Stargate Bridged USDC to networks that previously lacked USDC coverage.
Hydra solves one of the hardest problems in token distribution: reaching new chains instantly with compliant, composable assets.
Standardized Assets: Hydra distributes LayerZero OFTs that retain 1:1 parity and composability.
Instant Settlement: Transfers always complete with guaranteed finality on destination.
Zero Friction: Chains and asset issuers get instant, on-demand access to liquidity.
Launched in 2022, Stargate introduced the first native-asset bridge, enabling fast, safe movement of assets via a unified liquidity layer. In 2024, Stargate launched V2 with a redesigned architecture built to make bridging even cheaper and asset expansion even easier. This is made possible due to the V2 protocol moving away from the original static Delta algorithm to a dynamic, credit-based system called the AI Planning Module.
As an extension of V2, Hydra was introduced as the solution for cross-chain asset expansion. The key feature of Hydra is a canonical liquidity rail for ecosystems, enabling on-demand asset distribution for tokens wrapped under LayerZero’s Omnichain Fungible Token (OFT) standard. Using Hydra, Stargate can extend native token expansion—USDT, USDC, ETH, and others—to chains where they are not currently distributed, allowing users to move and exchange those tokens across Stargate’s global liquidity layer spanning 80+ chains.
Crypto has evolved. DeFi has grown. So has Stargate. Today, Stargate powers the movement of over 350 unique assets across 80+ chains--up from just 12 a year ago–processing $65B+ in total volume. Half of that volume has come since the launch of V2. Stargate has set the standard for internet-ready infrastructure built for internet-scale money, grounded in three core product values:
Compliant: Standardized assets on all chains, no additional wrappers or other bridged variations
Canonical: A native solution that goes live for day one, giving ecosystems instant interoperability with the entire Stargate network and all OFTs from LayerZero.
Composable: Build Omnichain and leverage Stargate’s unified liquidity
Stargate solves one of the biggest challenges in DeFi today, the cold start problem for liquidity. By handling distribution, routing, and interoperability with standardised assets, chains can go live with liquidity that can meet any level of demand. When an ecosystem takes off, Stargate scales with it to meet that market demand.
We’ve already seen this in action. Ahead of Berachain’s mainnet, over $500M in USDC and WETH deposits were made through Stargate and Royco’s cross-chain deposit module as part of the Boyco campaign, validating how early liquidity, routed through Stargate, can ignite ecosystem momentum well before native issuance is possible.
Let’s dive into how Stargate achieves its compatible status, breaking down Hydra’s ability to distribute at scale, with a specific look at Circle’s USDC.
Distribute any token instantly on-demand and absorb the contract with no impact on migration
When a user transfers an asset to a Hydra-enabled chain via Stargate, the native token is locked on the source chain, and an OFT version is minted on the destination chain for a 1:1 rate. The minted OFT acts like a native asset from day one, retaining full composability, interoperability benefits and standard functionality as its native counterpart.
If the transfer occurs between two Hydra-integrated chains, the asset is simply burned on the source and minted on the destination, preserving circulating supply and maintaining price parity across networks.
Issuers can later absorb these into the token's native supply, when they are ready to deploy into a chain where a Stargate version already exists. This process is a simple handover and it occurs without requiring a migration or leaving existing liquidity fragmented.
Hydra is the fastest way for any chain to go live with deep, composable liquidity.
Stargate Foundation, under DAO directive, has deployed Stargate’s Hydra to 30 chains, with some going live as quickly as day-one mainnet. Each integration enables ecosystems to support compliant standard, interoperable assets like USDC and USDT, without waiting on native issuers to deploy.
Plume: Stargate was live for day one of mainnet, facilitating the distribution of over $50M in Stargate Bridged USDC.
Berachain: $500M+ in deposits via Stargate and Royco’s onboarding module, kickstarting their “Proof of Liquidity” flywheel which saw total growth exceeding ~$3bn of assets.
The Optimism Superchain: Interoperable rollout of Stargate Bridged USDT0 to Soneium, Lisk, Mode, Swell, Wold Chain, Base and Optimism all within a 24 hour period, aligning with Optimism's broader Superchain stablecoin expansion strategy.
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This rapid rollout highlights what only Stargate makes possible: plug-and-play liquidity at internet scale. And with each integration, the value compounds — deepening liquidity, multiplying asset pathways, and expanding composability across the mesh.
More chains don’t just add coverage, they accelerate network effects. It’s Metcalfe’s Law, in motion.
In summary, Hydra provides multi-pronged benefits to multiple stakeholder groups, compounding the value it brings as its adoption accelerates:
For Asset Issuers: Access any market instantly by leveraging Stargate’s infrastructure, and retain full control to transition to native deployment when ready — without trade-offs.
For Chains: Unlock unlimited, on-demand liquidity in trusted assets like USDC and USDT from day one. Stargate connects you to 80+ chains, with no native bridge or issuer deployment needed.
For Users: Hydra can extend usage of any assets such as USDC, USDT, and wETH enabling you to use the tokens you’re familiar with that can be moved for zero slippage and redeemed instantly.
Stargate has worked closely with Circle to expand USDC’s reach. On chains where native USDC isn’t yet live, Stargate provides the infrastructure to distribute it immediately.
Stargate uses LayerZero’s OFT Standard — a smart contract capable of deploying to 130+ chains — to wrap and distribute Stargate Bridged USDC following Circles approved standard, eliminating the speed-to-market problem faced by issuers like Circle. Stargate delivers a zero-lift, day-one distribution path, enabling the OFT-based asset to enter circulation via Stargate’s infrastructure on any supported chain. Chains get standardized, trusted and canonical assets when they need them, and issuers gain early ecosystem exposure, without taking on the risk of native deployment.
Today, Stargate Bridged USDC is available on 28 chains, more than Circle’s own native footprint, making it the fastest and most scalable deployment method for stablecoins.
Stargate’s liquidity rail has already proven its value at scale. At peak, Hydra enabled over $1B in Stargate Bridged USDC to enter circulation — a 1.9% uplift to USDC’s total supply at the time. That onchain demand was met instantly, showcasing Stargate’s ability to scale trusted assets on-demand. It’s the liquidity infrastructure stablecoins can rely on to grow globally.
Stablecoin markets are expected to grow by $150B this year and trillions over the next decade. As more stablecoins are issued and more assets move onchain, the growth of tokenized value won't be driven by minting alone. It will depend on the programmable rails that facilitate its growth.
That’s what Stargate provides, the canonical liquidity rail for distributing and scaling tokenized assets in the onchain economy, at internet speed and global scale.
Stargate’s next move is the integration of native EURC, the fully reserved, Euro-denominated stablecoin issued by Circle and Stargate Bridged EURC, following an approved Bridged EURC standard. This will be the first non-USD stablecoin supported by Stargate, with further expansion plans in place for more stablecoin assets.
Beyond the bridge. Now, the liquidity rail for programmable currencies. Stargate scales distribution, guarantees settlement, and can provide liquidity for any tokenized asset. With $65B+ in transfers, support for 80+ chains, and production-grade integrations across top ecosystems, Stargate is the standard for moving money onchain.
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Additional Information
Stargate Bridged USDC refers to Circle’s Bridged USDC Standard distributed by Stargate as an OFT-based token. This is an implementation that follows Circle’s Bridged USDC Standard — a secure, upgradeable contract design that provides a path to native USDC without requiring token migration.
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