Hyperliquid launches USDH stablecoin after Native Markets’ win
Hyperliquid exchange has announced the launch of its new stablecoin, USDH, backed by cash and short-term US government bonds.
The first USDH/USDC market opened on Hyperliquid with about $2.2M in trading volume in the first hours. The launch followed a validator vote in which Native Markets beat out Paxos, Frax, and Agora.
USDH is the first stablecoin issued under Hyperliquid’s unique model: the issuer is chosen through validator voting. Native Markets proposed a phased rollout and a framework where part of reserve income would be used to buy back the governance token HYPE.
Under the terms, USDH reserves consist of cash and short-term Treasuries, with transparency ensured by oracles. Governance combines both off-chain components and on-chain oversight.
The vote for the issuer was one of the most talked-about campaigns in the Hyperliquid ecosystem. On Polymarket, Native Markets’ odds were rated significantly higher than competitors, despite Paxos’ heavy promotion tied to PayPal and Venmo integration.
The launch of USDH coincided with record growth in the stablecoin market: according to The Block, total supply has approached $280B – an all-time high.
For Hyperliquid, introducing its own dollar stablecoin is a strategic step: it gives the exchange control over liquidity, reduces reliance on USDC, and allows it to offer users a new settlement asset.
Under the terms, USDH reserves consist of cash and short-term Treasuries, with transparency ensured by oracles. Governance combines both off-chain components and on-chain oversight.
The vote for the issuer was one of the most talked-about campaigns in the Hyperliquid ecosystem. On Polymarket, Native Markets’ odds were rated significantly higher than competitors, despite Paxos’ heavy promotion tied to PayPal and Venmo integration.
The launch of USDH coincided with record growth in the stablecoin market: according to The Block, total supply has approached $280B – an all-time high.
For Hyperliquid, introducing its own dollar stablecoin is a strategic step: it gives the exchange control over liquidity, reduces reliance on USDC, and allows it to offer users a new settlement asset.
In short, the launch of USDH underscores the intensifying competition in the stablecoin market and exchanges’ drive for independence from external issuers.
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