Hyperliquid Launches USDH Stablecoin to Reduce Reliance on USDC

Hyperliquid has introduced its own fiat-backed stablecoin, USDH, in a strategic MOVE to diminish dependence on Circle's USDC. The new stablecoin, pegged to the U.S. dollar, went live on Hyperliquid's exchange with an initial trading pair of USDH/USDC, generating over $2 million in volume shortly after launch.

Backed by cash and short-dated U.S. Treasuries, USDH maintained its peg at approximately 1.001 against USDC, demonstrating early market confidence. The launch follows a validator vote that saw Native Markets, a relatively new player, secure the issuance rights over established competitors like Paxos and Frax.

This initiative comes as Hyperliquid faces declining market share in on-chain perpetuals, positioning USDH as both a revenue driver and a bid for relevance in the competitive DeFi landscape. The stablecoin's debut marks a pivotal step in Hyperliquid's broader strategy to reclaim sovereignty over its core trading unit.