Hyperliquid Doubles Down: Launches USDH Stablecoin in Bold Self-Bet
Hyperliquid just put its money where its mouth is—launching a proprietary stablecoin that challenges the DeFi status quo.
USDH enters a crowded stablecoin market dominated by giants like USDT and USDC. But Hyperliquid's move signals deeper ambitions than just creating another pegged asset.
The platform bets its reputation on USDH's stability mechanism—a departure from the algorithmic models that cratered during the last crypto winter. No vague promises about 'innovative stabilization'—just collateral-backed transparency that actually makes sense.
Because let's be honest—the crypto space needs fewer 'revolutionary' stablecoins and more that don't collapse when traders sneeze. Traditional finance might still laugh at our volatility, but at least we're trying to fix our own mess.
USDH could either become Hyperliquid's masterstroke or another cautionary tale in DeFi's unstable stablecoin saga. Either way—they're all in.
Hyperliquid’s stablecoin play
According to Hyperliquid, USDH is anchored by reserves in cash and short-dated U.S. Treasuries, with a structure that blends off-chain custodial management and an on-chain sleeve for transparency. Native Markets has tied the stablecoin’s reporting to oracle feeds and built in an economic loop that directs half of reserve earnings into Hyperliquid’s native HYPE buybacks, while the remainder is earmarked for broader ecosystem development
Hyperliquid’s push for a native stablecoin can be seen as a play for sovereignty. With over 90% of deposits on the platform currently in USDC, the exchange’s operations are heavily dependent on an external entity, Circle. By cultivating USDH, Hyperliquid aims to reduce this reliance, capture the fees and yield generated by its primary unit of account, and exert greater control over its own monetary base.
This development unfolds against a backdrop of explosive growth for the stablecoins industry. Their total market capitalization recently surged to a record $294.56 billion (see crypto.news’ report), underscoring their critical role as the lifeblood of the cryptocurrency market.
The expansion is being fueled in part by regulatory clarity in key jurisdictions. The passage of the GENIUS Act in the U.S. and the implementation of the MiCA framework in the European Union are providing the legal certainty that encourages broader institutional adoption and usage.
Concurrently, Hyperliquid faces intensifying pressure in its Core business. Its once-dominant share of the on-chain perpetuals market has receded sharply from a peak of 71% in May to approximately 38% today.
This erosion also comes as well-funded competitors like Lighter and Aster aggressively capture market share, leading to a fierce war for traders that includes tactics such as listing each other’s native tokens for Leveraged trading.
