Validators on Hyperliquid have voted to hand the long-reserved USDH ticker to Native Markets, clearing the way for the project to issue the network’s native stablecoin.
Native Markets co-founder Max Fiege announced the outcome on Sept. 14, saying HYPE stakers and validator operators supported the proposal.
According to him:
“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.”
Native Markets’ victory came against stiff competition from major stablecoin issuers, including Ethena, Paxos, and Agora. Each rival pitched aggressive revenue-sharing models to strengthen Hyperliquid’s ecosystem, offering to funnel yield into buybacks or ecosystem growth.
However, Native Markets’ proposal resonated with validators thanks to its detailed reserve structure, compliance safeguards, and the leadership team’s deep involvement with the decentralized exchange.
Native Markets was formed specifically to develop USDH, with the aim of reducing the $200 million in annual value leakage the Hyperliquid protocol has faced.
The project submitted its proposal less than two hours after Hyperliquid first announced the stablecoin, stressing its determination to lead the effort.
The proposal outlined that USDH will be issued directly on Hyperliquid’s HyperEVM network. Reserves will be fully backed by US Treasuries and cash, with on-chain assets managed by Superstate through Bridge and off-chain reserves initially held by BlackRock.
For compliance, issuance will run through Bridge, which already holds money transmission and MSB licenses in both the US and Europe.
Meanwhile, revenue from the stablecoin reserves will be split evenly, with half directed to HYPE buybacks and the Assistance Fund, and the other half dedicated to expanding USDH adoption.
What next?
According to Feige, his team is committed to deploying both the HIP-1 version of USDH and an ERC-20 token.
He said the rollout would begin with a capped testing phase, allowing traders to mint and redeem tokens in transactions of up to $800.
Once initial trials are complete, the team plans to open the USDH/USDC spot order book and enable unlimited mints and redemptions.
To accommodate institutional-scale activity, Native Markets also intends to make its API available for large-volume traders during testing. According to Fiege, this approach ensures robust liquidity and smooth integration into Hyperliquid’s trading environment.
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