Hyperliquid Community Chooses Native Markets to Launch Game-Changing USDH Stablecoin

Hyperliquid's decentralized governance just made its boldest move yet—selecting Native Markets to spearhead the USDH stablecoin launch.

Why This Matters

The community-driven decision bypasses traditional financial intermediaries, putting DeFi-native innovation front and center. No banking partners, no legacy infrastructure—just pure algorithmic execution.

Native Markets brings its deep liquidity expertise to the table, ensuring USDH hits the ground running with robust market-making from day one. Their track record in volatile crypto markets gives this stablecoin immediate credibility.

Market Impact

This isn't just another stablecoin—it's Hyperliquid's play for dominance in DeFi's most competitive vertical. The move challenges established players by offering deeper integration with native DeFi protocols and better yield opportunities.

Because let's be honest—traditional finance still thinks stablecoins are just digital dollars, missing the entire point of programmable money entirely.

Bottom line: Hyperliquid just cut out the middleman and went straight for the jugular of legacy stablecoin providers. Watch this space—USDH could become the defacto stable asset for sophisticated DeFi users tired of banking-as-usual excuses.

A contested race with high rewards

Hyperliquid launched the USDH competition on Sept. 5, inviting proposals for a Hyperliquid-first stablecoin designed to reduce the platform’s reliance on USDC and USDT. 

Eight teams participated, including well-known issuers with institutional relationships and regulatory credentials. However, Native Markets, backed by Fiege and a group DeFi veterans, led in validator support with over 70% of the delegated stake at the end of voting.

The proposal promises to issue USDH directly on HyperEVM, with reserves split between on-chain partners like Superstate and off-chain custodians like BlackRock. Half of the reserve yield will be used to fund HYPE token buybacks, while the other half will be used to support ecosystem development. 

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.

Analysts estimate that the structure could generate hundreds of millions of dollars annually, which WOULD be very advantageous for both the exchange community and the issuer.

Community reaction and next steps

There was some controversy surrounding the process. Haseeb Qureshi of Dragonfly was among the critics who claimed that despite stronger bids from more established institutions, the vote went in favor of Native Markets. Others expressed worries about concentration, pointing out that one validator wallet allegedly held 15% of the total.

Still, Ethena (ENA) founder Guy Young, whose team withdrew earlier in the contest, defended the outcome as a genuine reflection of Hyperliquid’s grassroots governance.

Native Markets now faces the challenge of delivering quickly. Fiege announced that both HIP-1 and ERC-20 versions of USDH will be deployed within days, starting with capped mint and redeem tests of $800 per transaction before opening to unlimited flows.

A USDH/USDC spot market is also planned, alongside an API rollout for high-volume traders. Circle, sensing the competitive pressure, has already announced native USDC deployment on Hyperliquid.

The ruling represents a turning point for Hyperliquid in its efforts to increase its independence from legacy issuers and internalize stablecoin yield. For decentralized finance, it demonstrates how billion-dollar markets can be shaped by validator-led governance, despite ongoing concerns about decentralization and fairness.