Hyperliquid's USDH Stablecoin Launches, Trading Volume Hits $2 Million

Hyperliquid's latest price was $45.56, up 1.649% in the last 24 hours. Hyperliquid, a decentralized derivatives exchange, launched its first native stablecoin, USDH, on Wednesday. The stablecoin was introduced with an initial USDC trading pair, and early trading volumes reached nearly $2 million. This launch is significant as it provides the network with a dollar-pegged asset that can serve as a stable unit of account and collateral, reducing the protocol's reliance on external stablecoins like Circle’s USDC.

USDH is minted on HyperEVM, Hyperliquid’s Ethereum-compatible execution layer, which allows it to circulate across the network. The token is backed by cash and U.S. Treasury equivalents, with reserves managed through Bridge, Stripe’s tokenization platform. Native Markets, the issuer of USDH, will oversee billions in potential flows as it manages the stablecoin’s collateral base. Native Markets is led by Hyperliquid investor Max Fiege, former Uniswap Labs president Mary-Catherine Lader, and blockchain researcher Anish Agnihotri. The startup won issuance rights following a validator vote on Sept. 14, making USDH the first stablecoin governed by the protocol’s validator community.

The selection of Native Markets followed a heated bidding process that began on Sept. 5, when Hyperliquid opened governance for USDH’s issuance rights. Proposals poured in from various contenders, including Paxos, Sky, Frax Finance, Agora, Curve, OpenEden, Bitgo, and Ethena. Ethena later withdrew and endorsed Native Markets, narrowing the field. Native’s proposal included dividing reserve income equally between HYPE token buybacks and ecosystem development, which resonated with validators. However, the process drew criticism from some quarters, who argued that the outcome appeared prearranged and that multiple bidders told them validators had no interest in considering alternatives. Despite the criticism, validators awarded Native Markets more than two-thirds of votes, handing the startup control of Hyperliquid’s first stablecoin. The win marked Hyperliquid’s most consequential governance decision since its November 2024 HYPE token airdrop.

Following the governance outcome, Hyperliquid is now facing new challenges as rivals expand aggressively. One of those rivals is Aster, a decentralized perpetuals exchange on the BNB Chain. The surge underscores the growing pressure on Hyperliquid to secure liquidity and reinforce its moat. For Hyperliquid, the launch of USDH is meant to provide deeper liquidity, more predictable collateral, and independence from third-party stablecoin issuers. However, controversy around governance and the optics of validator alignment with a brand-new startup could create reputational risks, especially as institutional players evaluate entry points into decentralized derivatives markets.

Native Markets will now focus on scaling USDH circulation, ensuring collateral quality, and managing reserve transparency through Bridge. If adoption grows, Hyperliquid could reduce dependency on external stablecoins and capture yield within its own ecosystem. At the same time, governance will remain under scrutiny as validators weigh future decisions about token economics and ecosystem incentives. The USDH stablecoin is a dollar-pegged token minted on HyperEVM and issued by Native Markets to serve as Hyperliquid’s native unit of account and collateral. It aims to keep yield and liquidity inside the Hyperliquid ecosystem while reducing reliance on external stablecoins such as USDC. Native Markets was selected by validator vote on Sept. 14 to issue USDH. The stablecoin launched with a USDC trading pair and recorded nearly $2 million in early trading volume. According to Native Markets’ proposal, USDH is backed by cash and U.S. Treasury equivalents. Reserve management will rely on Bridge, Stripe’s tokenization platform, to tokenize and custody reserve assets while disclosing the structure to validators and ecosystem stakeholders. USDH will function as a stable unit for trading, margin, and collateral across HyperEVM. By being minted natively, it lets Hyperliquid retain yield internal to its network and reduces dependency on external stablecoins for liquidity and settlement.

Hyperliquid has officially launched its native stablecoin USDH, marking a significant milestone for the platform. The launch followed competitive bidding for the stablecoin's issuance rights, culminating in the deployment of USDH on Hyperliquid's ecosystem. Early activity showed over $2 million in trading volume for USDH, with the USDH/USDC pair initially active on the platform. A substantial $15 million worth of USDH was pre-minted in the 24 hours preceding its launch, indicating significant initial demand and preparatory activity from market participants. The USDH/USDC spot order book commenced trading on HyperCore, Hyperliquid's core trading infrastructure, facilitating immediate access to the new stablecoin pair.

A notable development involved a major holder of Hyperliquid's native token HYPE, often described as an "OG whale," transferring approximately $9 million worth of HYPE holdings. This capital was reportedly moved to support Aster, a decentralized exchange positioned as a competitor to Hyperliquid. This shift by a significant participant highlights evolving dynamics within the decentralized exchange landscape. Within the Hyperliquid community, a debate concerning tokenomics has emerged, centered on a proposal to substantially reduce the total token supply. A key suggestion put forth is to cut Hyperliquid's total token supply by 45%. This proposal argues for the need to reassess the fully diluted valuation (FDV) metric, implying that the current token supply structure may not optimally serve the platform's long-term economic health or participant alignment.