Native Markets will be the issuer of stablecoin USDH on hyperliquid

USDH Auction

In a landmark display of decentralized governance, Hyperliquid’s validators selected Native Markets to lead the development and issuance of USDH, the platform’s first native stablecoin, after a week of intense proposals and voting that ended on September 15, 2025. Dubbed a “native” project due to its exclusive focus on Hyperliquid’s ecosystem, Native Markets won the USDH token with an overwhelming 70-97% vote, beating out heavyweights like Paxos and Frax.

As Hyperliquid — which already dominates 80% of on-chain perps trading — moves toward independence from USDC and USDT, this article will analyze the voting dynamics, Native Markets’ plans, and the ripple effects across the entire blockchain landscape, compared to recent investment fund booms like SharpLink’s $723 million ETH windfall.

Hyperliquid launched the USDH competition on September 5, 2025, calling for proposals for a native stablecoin that would reduce reliance on external issuers like Circle’s USDC, which holds $5.6 billion (7.5% of total supply) on the platform. Eight teams competed for the spot, including mainstays Paxos and BitGo, along with DeFi natives Ethena, Frax, Sky, and Agora. Validators, backed by staked HYPE tokens, declared their support on September 10–11, with a final online vote on September 14–15.

Native Markets was a force to be reckoned with from the start, holding 30.8% of the authorized stake on September 10, and soaring to over 70% by the close. Ethena’s mid-week withdrawal—citing community opposition to its non-native focus—paved the way, while Paxos (holding 7.6% of the stake) and others balked despite more attractive yield offers (e.g. Paxos’ 95% HYPE buyback commitment). The Hyperliquid Fund did not vote to ensure fairness, emphasizing community control.

Voting Mechanism and USDH

The governance process is Hyperliquid's first major on-chain vote outside of asset delisting, weighted by HYPE stake (excluding Foundation stake). Validators such as Nansen x HypurrCollective (18% stake) and Galaxy Digital have backed Native Markets for the native HyperEVM issuance and Stripe Bridge integration. USDH Architecture: Backing: Fully backed by US Treasuries/cash; on-chain via Superstate/Bridge, off-chain initially via BlackRock.

• Release: Live on HyperEVM; US GENIUS Act and EU MiCA compliant via Bridge license.

• Yield sharing: 50% to HYPE Support Fund for buyback; 50% to USDH growth (partnerships, HIP-3 marketplace, HyperEVM dApp).

• Phased rollout: Starting with tests to ensure stability and liquidity of the peg; Hyperliquid requires $10 million HYPE staking and deep liquidity for all stablecoins, including USDC.

This setup solves Hyperliquid’s annual “value leakage” of over $200 million to external issuers, while also recycling profits internally. On-chain data shows HYPE’s TVL is $1.2 billion, with USDH poised to accelerate.

Evaluation and Conclusion

Hyperliquid’s validators have made a big bet on Native Markets’ “native” vision for USDH, securing a native stablecoin that could stem $200 million in leakage and fuel ecosystem turnover. Overtaking Paxos and Frax, this 70% mandate highlights the strength of community in the DeFi stablecoin space, in contrast to SharpLink’s triumph in the ETH treasury space. However, breaking USDC’s stranglehold requires perfect pegging and liquidity. As HYPE soars, USDH is more than just a token—it’s Hyperliquid’s declaration of independence, ready to redefine yield in the $160 billion stablecoin bull market.

Disclaimer: The information presented in this article is the author's personal opinion on the cryptocurrency field. It is not intended to be financial or investment advice. Any investment decision should be based on careful consideration of your personal portfolio and risk tolerance. The views expressed in the article do not represent the official position of the platform. We recommend that readers conduct their own research and consult with a professional before making any investment decisions.