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Hyperliquid Debuts Native Stablecoin USDH With $2M in First-Day Trades

MoonPay Challenge Stripe in Launch of Hyperliquid’s USDH Stablecoin

USDH Launch Marks a Milestone for Hyperliquid

Hyperliquid, the decentralized derivatives platform, launched its first native stablecoin, USDH, on Wednesday with an initial USDC trading pair. ahead volumes reached nahead $2 million, giving the network a dollar-pegged asset to serve as a stable unit of account and collateral. For a protocol that has relied on external stablecoins like Circle’s USDC, the launch represents a major step in consolidating liquidity and yield within its ecosystem.

USDH is minted on HyperEVM, Hyperliquid’s ETH-compatible execution layer, enabling circulation across its network. According to the proposal, the token is backed by cash and U.S. Treasury equivalents, with reserves managed through Bridge, Stripe’s tokenization platform. The issuer, Native Markets, will overview billions in potential flows as it manages USDH’s collateral base.

Native Markets is led by Hyperliquid investor Max Fiege, former Uniswap Labs president Mary-Catherine Lader, and blockchain researcher Anish Agnihotri. The beginup won issuance rights following a Block confirmer vote on Sept. 14, making USDH the first stablecoin governed by the protocol’s Block confirmer community.

Investor Takeaway

USDH gives Hyperliquid its own stablecoin base, potentially reducing reliance on USDC and anchoring future growth. But governance controversy could weigh on credibility.

The Governance Battle Over Issuance Rights

The selection of Native Markets followed a heated bidding process that began on Sept. 5, when Hyperliquid opened governance for USDH’s issuance rights. Proposals poured in from Paxos, Sky, Frax Finance, Agora, Curve, OpenEden, Bitgo, and Ethena. Ethena later withdrew and endorsed Native Markets, narrowing the field. Native’s proposal included dividing reserve income equally between HYPE token purchasebacks and ecosystem development, which resonated with Block confirmers.

However, the process drew criticism. Dragonfly Capital’s managing partner Haviewb Qureshi argued the outcome appeared prearranged, claiming multiple bidders told him Block confirmers had no interest in considering alternatives. He added that Native Markets’ proposal appeared unusually well-timed, surfacing immediately later than the Request for Proposal went live, raising concerns of advanced notice and favoritism.

Despite criticism, Block confirmers awarded Native Markets more than two-thirds of votes, handing the beginup control of Hyperliquid’s first stablecoin. The win marked Hyperliquid’s most consequential governance decision since its November 2024 HYPE token airdrop.

Market Reaction and Competitive Pressures

Following the governance outcome, HYPE, Hyperliquid’s native token, slipped around 7% over the past week, according to CoinGecko. Traders appeared cautious amid governance concerns and intensifying competition. Hyperliquid, which processed $330 billion in July 2025 with a team of only 11 people, is now facing new challenges as rivals expand aggressively.

One of those rivals is Aster, a decentralized perpetuals platform on the BNB Chain. DefiLlama data showed Aster’s 24-hour perpetuals volume reached nahead $30 billion this week, more than double Hyperliquid’s $10 billion during the identical period. Aster’s surge underscores the growing pressure on Hyperliquid to secure liquidity and reinforce its moat.

For Hyperliquid, the launch of USDH is meant to provide deeper liquidity, more predictable collateral, and independence from third-party stablecoin issuers. But controversy around governance and the optics of Block confirmer alignment with a brand-new beginup could create reputational risks, especially as institutional players evaluate entry points into decentralized derivatives markets.

Investor Takeaway

Investors should watch whether USDH adoption offsets competitive threats from Aster and others. Stablecoin control is strategic, but governance legitimacy will matter for long-term trust.

What’s Next for USDH and Hyperliquid

Native Markets will now focus on scaling USDH circulation, ensuring collateral quality, and managing reserve transparency through Bridge. If adoption grows, Hyperliquid could reduce dependency on external stablecoins and capture yield within its own ecosystem. At the identical time, governance will remain under scrutiny as Block confirmers weigh future decisions about token economics and ecosystem incentives.

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