Native Markets Outpaces Paxos and Rivals to Secure Hyperliquid Stablecoin USDH Dominance
In a seismic shift for decentralized finance, Native Markets just clinched the hyperliquid stablecoin crown—leaving legacy players like Paxos scrambling in the dust.
The USDH stablecoin, now under Native's wing, promises near-instant settlements and razor-thin fees. No more waiting for traditional banking rails to catch up.
Paxos and other contenders? They brought knives to a gunfight. Native's architecture simply outmaneuvered them on speed, cost, and scalability.
This isn't just a win—it's a statement. Stablecoins are evolving beyond pegged tokens into high-performance financial instruments. And the old guard? Still counting their paper profits while crypto redefines the game.
One cynical take? Traditional finance had decades to innovate. It took a crypto-native firm to finally make stablecoins actually stable—and useful.
Paxos Falls Short in USDH Bid Despite Midweek Proposal Revision
Paxos remained in contention but failed to gain momentum despite revising its proposal midweek.
Paxos’ Version 2 pitch included a DEEP integration of USDH into PayPal and Venmo, zero-cost on/off-ramps, and a $20 million incentive plan.
It also commited all USDH revenue to Hyperliquid’s growth until $1 billion in total value locked (TVL) is reached, with Paxos capping its own share at 5% beyond $5 billion.
Criticism emerged over the process itself. Some observers argued the compressed RFP timeline and validator links to Hyperliquid infrastructure may have given Native Markets an edge.
Still, the vote concluded with broad validator backing and strong odds on prediction platform Myriad.
Founder Max Fiege announced a phased rollout plan beginning with the submission of a Hyperliquid Improvement Proposal.
The launch will include limited minting and redemption trials, capped at $800 per user, to test Core functions before opening a USDH/USDC spot market and eventually unlocking full access.
Native Markets has been awarded the USDH ticker on Hyperliquid.
Thank you to all HYPE stakers and network validators for their time and effort in reviewing the proposals put forward.
Native Markets pitched a tightly integrated stablecoin strategy tailored to Hyperliquid. Reserves in cash and US Treasuries will be managed off-chain by BlackRock, while on-chain tokenized assets will be handled via Superstate and Stripe’s Bridge infrastructure.
Notably, the team pledged to split all reserve yield between Hyperliquid’s Assistance Fund and broader ecosystem growth.
The team’s credibility was bolstered by backers with experience at Uniswap Labs, Paradigm, and Polychain. Early endorsements from validator groups such as CMI Trading helped further solidify support.
Trump-Backed GENIUS Act Boosts US Push for Dollar-Pegged Stablecoins
The recent passage of the GENIUS Act, signed by President Trump, aims to cement the dollar’s dominance by backing dollar-pegged stablecoins in global markets.
The Treasury Department expects the stablecoin market to exceed $2 trillion by 2028, a projection that places greater emphasis on liquidity, interoperability, and regulatory alignment across the ecosystem. Tether’s latest MOVE underscores a pragmatic shift toward that future.
As reported, Ripple CEO Brad Garlinghouse has said the stablecoin sector is poised for explosive growth, projecting the market could balloon from its current $250 billion capitalization to as much as $2 trillion in the near future.
“Many people think it will reach $1 to $2 trillion in a handful of years,” Garlinghouse said, adding that Ripple is positioned to benefit from that trajectory.
Meanwhile, Western Union is positioning itself for a new phase of digital transformation, signaling strong interest in using stablecoins to modernize its global remittance operations.
