Native Markets Wins USDH in Hyperliquid Stablecoin Race

TLDR

• Native Markets wins USDH ticker, Hyperliquid’s first native stablecoin

• USDH launches on Hyperliquid with dual reserves, capped trials ahead

• Hyperliquid adds USDH stablecoin after decisive validator governance vote

• Native Markets secures USDH with reserve split and HYPE buyback plan

• USDH rollout begins: capped mints, USDC pair, validator-backed momentum

Native Markets secured the USDH ticker on Hyperliquid following a highly competitive governance vote. The campaign drew multiple bids from stablecoin and crypto infrastructure leaders. This move introduces Hyperliquid’s first natively issued stablecoin backed by a dual reserve model.

The USDH stablecoin will follow a phased rollout, starting with capped minting and redemption trials. These tests aim to validate functionality and on-chain stability under limited volume conditions. Native Markets will then open a USDH/USDC spot pair before removing restrictions.

This marks Hyperliquid’s first major governance vote outside of routine listings, demonstrating its validator community’s influence. Native Markets submitted the earliest proposal and gained traction through strong backing and prediction market momentum. The Hyperliquid Foundation chose not to participate in the vote.

Native Markets Rolls Out USDH with Integrated Strategy

Native Markets plans to manage USDH reserves through both off-chain and on-chain channels. BlackRock will handle fiat and Treasury equivalents, while Superstate and Stripe’s Bridge will oversee tokenized reserves. This dual approach ensures liquidity, transparency, and broad risk coverage.

The team confirmed it will split reserve yield between HYPE token buybacks and programs to grow USDH adoption. This model links USDH performance to Hyperliquid’s ecosystem development and offers clear incentives for community support. Native Markets will implement capped mints of $800 per user during the testing phase.

Native Markets was co-founded by Max Fiege, Anish Agnihotri, and MC Lader, who bring experience from Hyperliquid, Paradigm, and Uniswap. Their involvement added institutional credibility and a deep understanding of decentralized finance. Validators such as CMI Trading provided early endorsements, boosting confidence in the bid.

Paxos Fails to Gain Traction Despite Strong Revision

Paxos revised its proposal mid-contest with a deep integration plan for PayPal and Venmo. It offered zero-cost on/off-ramps and a $20 million incentive pool. Despite these features, Paxos failed to gather momentum from validators.

The Paxos pitch promised to allocate all USDH revenue to ecosystem growth until $1 billion in TVL. After that threshold, it would keep only 5% of revenue beyond $5 billion. However, concerns around timing and execution hurt its campaign.

Observers raised questions about the fast-paced RFP process, suggesting a possible advantage for Native Markets. Despite this, validator support and prediction markets leaned heavily toward the winning bid. The contest concluded with a decisive community preference for Native Markets’ proposal.

Ethena and Others Exit as USDH Support Solidifies

Ethena initially appeared as a leading contender but later withdrew from the race. The exit followed feedback about its non-native infrastructure not aligning with Hyperliquid’s goals. Ethena cited a lack of validator confidence as the primary reason for its departure.

Other participants, including BitGo, proposed aggressive yield-sharing models to win support. Most bids pledged to reinvest returns into the Hyperliquid ecosystem, linking success with HYPE token value. Despite these efforts, Native Markets maintained its lead throughout the vote.

Hyperliquid will continue to support other stablecoins like USDC, which holds nearly $6 billion in reserves on the network. However, issuers must meet specific requirements such as peg stability, liquidity depth, and a 200,000 HYPE token stake. These thresholds ensure that USDH competes within a secure and transparent framework.

USDH issuance comes at a time when the stablecoin market is poised for expansion. The U.S. Treasury expects the sector to surpass $2 trillion by 2028, driven by demand for dollar-pegged assets. The launch of USDH positions Hyperliquid to capitalize on this anticipated growth wave.

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