Hyperliquid Community Chooses Native Markets to Launch USDH Stablecoin

Native Markets has clinched a highly coveted position in decentralized finance by winning the community vote to launch Hyperliquid's new USDH stablecoin.

Key Takeaways

Community Vote Victory: Native Markets wins the right to issue the USDH stablecoin after a community vote.
High Stakes Competition: Eight teams participated in the USDH contest, but Native Markets secured over 70% validator support.
Revenue Potential: The USDH structure could generate hundreds of millions annually for both the issuer and the exchange community.
Execution Plans: USDH will be deployed shortly, enabling capped minting and redemption, with future plans for an API for high-volume traders.
Concerns and Defense: Some industry voices raised concerns regarding the fairness of the voting process, while others defended its grassroots nature.

Hyperliquid USDH Stablecoin Governance Vote Results

This startup, which was established just weeks before the voting commenced, has been given the USDH ticker following a governance vote led by validators. This victory grants them exclusive rights over a stablecoin projected to bring billions in liquidity to the exchange. The announcement was made by Max Fiege, co-founder of Native Markets, on September 14, following a nine-day voting process that attracted impressive competitors such as Paxos and Frax, showcasing the significance of gaining entry into Hyperliquid's rapidly expanding markets.

Competitive Environment with High Stakes

Hyperliquid initiated the USDH contest on September 5, inviting proposals for a stablecoin that prioritizes Hyperliquid and reduces reliance on USDC and USDT.

A total of eight teams entered the competition, including reputable issuers with established institutional ties and regulatory endorsement. However, Native Markets, supported by Fiege and a team of experienced DeFi professionals, garnered over 70% of validator backing by the end of the voting.

The proposal outlines that USDH will be issued directly on HyperEVM, with reserves divided between both on-chain partners like Superstate and off-chain custodians such as BlackRock. Half of the revenue generated from reserves will fund HYPE token buybacks, while the other half will 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."
— Max Fiege (@fiege_max) September 14, 2025

Analysts predict that this structure could yield hundreds of millions of dollars annually, providing significant benefits for both the exchange community and the issuer.

Community Feedback and Future Plans

The process sparked some debate. Haseeb Qureshi from Dragonfly was among the critics who argued that although more prominent institutions had submitted stronger proposals, the voting favoring Native Markets was concerning. Others noted potential issues with concentration, mentioning that one validator wallet supposedly owned 15% of the total votes.

Nevertheless, Guy Young, the founder of Ethena—whose team had withdrawn from the competition—defended the outcome as an accurate demonstration of Hyperliquid's grassroots governance.

As Native Markets prepares for execution, Fiege indicated that both HIP-1 and ERC-20 versions of USDH will be deployed within days, starting with minting and redemption tests capped at $800 per transaction, before allowing unlimited transactions.

A USDH/USDC spot market is also in the works, along with a rollout of APIs for high-volume traders. In light of this competitive scenario, Circle has already announced a native USDC deployment on Hyperliquid.

This decision marks a pivotal moment for Hyperliquid as it works towards greater autonomy from traditional issuers and aims to internalize stablecoin yields. For the decentralized finance landscape, it highlights how validator-led governance can shape billion-dollar markets, even amid ongoing discussions regarding decentralization and equity.