Validators supported a fast, ecosystem-first proposal around established publishers, raising questions about risk, governance and trust.
The native market has won bids to build a decentralized Exchange Hyperliquid native Stablecoin USDH, and experts say the choice reflects the speed and integrity gambling for established issuers’ safety.
The team, which released the news on Sunday, September 14th, defeated well-known companies such as Paxos, Bitgo, Ethena and Frax in a community vote. Native Market submitted its first proposal and was chosen by the majority of two-thirds of the pile hype tokens. USDH will begin in a small test phase in the coming days before it is fully launched.
The vote highlights how the high-lipid community prefers speed, alignment and commitment over celebrities, experts told the rebels. The Native Market proposal promised rapid deployment, direct integration with the platform, and plans to return revenue to the ecosystem, despite the team being new and untested.
“Pressing the boundary”
“We’re looking forward to seeing you in the world,” said Sid Sridhar, founder of BIMA Labs. “That’s how disruption happens, not by incumbents with managed assets or the largest compliance team, but by newcomers who are hungry, more agile and willing to push boundaries.”
Silhouette co-founder Chandler de Kock reiterated the point by noting that Native Market had been pushing for launching Stablecoin for over a year. “They’re standing within the ecosystem made them a clear choice,” De Kock said. “The other more established players had a stronger track record, but for them, USDH was just another project. For the native market, it was their central focus, and that alignment was important to the Balters.”
If the native market is successful, “it will be an outside story where existing people seize opportunities either too late or too careful,” Sridhar added. “If they fail, it could undermine confidence not only in the high-lipid silly idiotic, but also in the broader effort to make stubcoins mainstream.”
Experts also pointed to the Native Market Hyper Liquid First Design as the key reason behind the vote. “Essentially everything remains in-house,” said Jonathan Morgan, senior Crypto analyst at StockTwits, adding that the 50/50 split split of reserve yields between hype buybacks and ecosystem growth is likely to have gained support.
Valitter also evaluated the plumbing, and said Morgan handled compliance through the bridge (using Stripe’s KYC/AML system) and through BlackRock-controlled off-chain sanctuaries, as well as in-chain sanctuaries via Superstars.
Building Trust
Meanwhile, experts warned that Stablecoins ultimately rely on trust. That’s where the native market still proves the most. Established publishers like Paxos have years of experience in auditing, compliance checks and regulatory oversight. In the context, Paxos is the publisher of PayPal’s Pyusd.
“Established publishers have spent years building these defenses. They have combat-tested infrastructure, endured regulatory fire drills and have deep institutional relationships,” Sridar said. “When you choose a new issuer, you’re trading part of that history. That doesn’t mean that failure is inevitable, but it means that the standard of proof is higher.”
Other risks stem from mechanics. Morgan noted that collateral, issuing rails and liquidity only work if the systems and counterparties behind it are run without any confusion. “If the bridge is frozen or the superstate is delayed when there is a lot of demand and activity, it can cause some issues in the future.”
Meanwhile, some experts see the risks of how decisions were made. Coin Bureau CEO Nic Puckrin said the process has already raised eyebrows. “Some people suggest that the outcome was pre-determined, but it raised governance concerns, which in turn caused trust issues,” Paxlin said. “If confidence in the selection process is unstable, it could ripple into skepticalism about USDH itself.”
He also emphasized that the hybrid reserve model is risky. Because it relies partially on off-chain assets and external managers, “it’s fine if things are smooth, but in the early stages, the volatility of the pegs can be exaggerated.”
Hyperliquid’s native token hype has skyrocketed 21% over the past two weeks, and is currently trading at $53.49.