Native Markets wins bid to issue USDH stablecoin on Hyperliquid
Hyperliquid has chosen the issuer of its new stablecoin, USDH. After a fierce competition among leading firms, Native Markets won the race.
Hyperliquid, the largest decentralized derivatives exchange, announced plans to launch its own stablecoin in early September. The platform currently holds about $5.6 billion in USDC stablecoin liquidity, generating profits for Circle, USDC’s issuer. To redirect part of this revenue into its own ecosystem, Hyperliquid initiated a competitive bidding process to select the issuer of its new stablecoin.
Several major players joined the competition to issue USDH, including Paxos, Agora, and Ethena Labs. Each offered its own revenue-sharing models.
Paxos pledged to direct 95% of the profit from USDH reserves toward buybacks and distribution of Hyperliquid’s native token, HYPE. Agora offered to allocate 100% of the net profit to Hyperliquid either through contributions to the platform's Assistance Fund or to HYPE buybacks. Ethena Labs proposed to redirect 95% of the reserve revenue back into the Hyperliquid ecosystem, including rewards for validators.
Meanwhile, Native Markets’ comprehensive proposal included:
This package won over the validators, who voted in favor of Native Markets as the issuer of USDH.
- a partnership with PayPal/Venmo to simplify deposits and withdrawals;
- an investment of $20 million in the ecosystem;
- integration of global payment systems;
- a flexible revenue and issuance management model, prioritizing the Hyperliquid ecosystem.
Native Markets plans to launch a test version of the USDH stablecoin in the coming days, with a USDH/USDC spot pair set to launch on Hyperliquid once the trial phase is complete. The stablecoin will be fully native to the Hyperliquid blockchain and will be issued on HyperEVM with full integration into HyperCore. The transaction history will remain transparent for the entire ecosystem.
USDH will be backed by U.S. dollars and Treasury securities, with BlackRock managing off-chain reserves and Superstate managing on-chain reserves.
The design already includes institutional support, audited smart contracts, and advanced security systems.
Native Markets also emphasized full regulatory compliance, confirming that the stablecoin issuance will align with the GENIUS Act, the U.S. stablecoin framework.
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