Hyperliquid Validators Select Native Markets to Issue USDH Stablecoin

The competition to issue Hyperliquid’s first native stablecoin has finally reached its conclusion. Validators on the network have chosen Native Markets as the steward of USDH, ending a governance process that drew multiple proposals from some of the industry’s best-known stablecoin issuers.

With the decision made, Native Markets says it is wasting no time in moving toward a staged rollout, starting with capped mint and redeem testing before USDH becomes more broadly available.

From proposal to victory

The bidding process marked Hyperliquid’s first major governance vote outside of routine listings, and it attracted strong participation across the community.

Native Markets submitted its proposal just 90 minutes after Hyperliquid put out the initial call on September 5, later refining it in response to community feedback.

While groups like Paxos, BitGo, and Ethena also threw their hats into the ring, prediction markets consistently favored Native Markets throughout the weeklong process.

Validators confirmed that support in the on-chain vote, awarding the USDH ticker to Native Markets. Notably, the Hyperliquid Foundation abstained from voting, leaving the outcome entirely in the hands of the network’s stakers.

In a message posted to X, Native Markets co-founder Max Fiege thanked validators and HYPE holders for their backing, adding that deployment of both the HIP-1 standard and an ERC-20 version of USDH would begin within days.

What comes next for USDH

Native Markets has laid out a cautious rollout schedule, beginning with a testing phase that limits mint and redeem transactions to $800 per transfer.

The cap will allow the team to monitor activity before opening a USDH/USDC spot pair and later removing restrictions altogether. Fiege invited large-scale Hyperliquid traders to participate in API testing during this phase.

According to the proposal, USDH will be fully backed by cash and U.S. Treasury equivalents. Off-chain reserves will initially be managed by BlackRock, while on-chain reserves will be handled through Superstate using Stripe-owned Bridge.

Yield generated by these reserves will be split between HYPE token buybacks and initiatives to expand USDH adoption across the network.

The new stablecoin could pose a challenge to Circle’s USDC, which currently dominates Hyperliquid with nearly $6 billion in reserves. However, USDC and other stablecoins will still remain supported provided they meet requirements like maintaining a $1 peg, sufficient liquidity, and a 200,000 HYPE stake.

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