Hyperliquid’s native Stablecoin, USDH, launched on Wednesday in a USDC trading pair, hitting nearly $2 million in early trading.
With USDH currently live, Hyperliquid has assets imposed in the first dollar, providing traders with stable accounts and collateral across their networks.
The native market manages Exchange’s Stablecoin and oversees billions of dollars in potential flows. Crypto Startup was chosen through the Validator vote on September 14th, led by former Liquid Investor Max Fiege, former Uniswap Labs president Mary-Catherine Lader and Blockchain Researcher Anish Agnihotri.
According to the Native Market’s original proposal, Stablecoin is backed by cash and US Treasury equivalents and relies on Bridge, Stripe’s tokenization platform, to manage its reserves.
USDH is minted with HypereVM, the Ethereum compatible execution layer of Hyperliquid, which reduces reliance on external stub coins such as Circle’s USDC (USDC), allowing it to circulate throughout the network while maintaining yield within the ecosystem.
Hyperliquid is a decentralized derivative exchange that launched a hype token via Airdrop in November 2024.
Related: Crypto companies propose to cut their hype supply by 45%
Bid War for Hyperliquid Stablecoin
Hyperliquid’s bid war on issuing rights to Stablecoin began on September 5th, when Hyperliquid announced that it would begin a governance process to award USDH tickers.
Shortly thereafter, Native Market submitted a bid, issued USDH natively on HypereVM, and committed to equally splitting reserve income between hype token repurchase and fundraising ecosystem development.
In the next hours and days, offers were filed by Paxos, Sky, Frax Finance, Agora, Curve, Openeden, Bitgo and Ethena, the latter ultimately retracting its bid and approved native market.
This process is not without controversy. Despite large companies like Paxos, Ethena and Agora proposing more robust proposals, some critics, such as the managing partner of venture capital firm Dragonfly Haseeb Qureshi, claimed it appears to be coordinated to support the native market.
On September 9th, Qureshi heard X “from multiple bidders, none of the validators are interested in considering anyone outside the native market,” and the fact that the proposal from Crypto’s startup was announced shortly after it was announced, “they suggested they had high-level notice.”
He also said that the native market is a “brand new startup.”
Despite critics, Native Market came to the top on September 14th, winning HyperLiquid’s first major governance decision, winning more than two-thirds of the validator’s vote.
Hype, the traditional cryptocurrency of Hyperliquid, has fallen by about 7% over the past seven days, according to Coingecko data.
In high lipids, we also see new competition from Aster, a decentralized permanent exchange carried out in the BNB chain.
On Wednesday, Defillama data showed Aster’s persistent daily trading volume was closed at $30 billion, more than doubled that of Hyperliquid, which had recorded around $10 billion at the time of writing.
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