Hyperliquid taps Native Markets to issue USDH stablecoin

Native Markets has secured one of the most sought-after roles in decentralized finance, winning the community vote to issue Hyperliquids new USDH stablecoin.

• Native Markets won Hyperliquids validator vote to issue the USDH stablecoin, beating out established competitors like Paxos and Frax.
• The proposal splits reserve yield between HYPE buybacks and ecosystem growth.
• While critics flagged validator concentration, supporters called the result a win for Hyperliquids community-driven governance.

Native Markets has been awarded the USDH ticker following a validator-led governance vote. The outcome gives the young startup, formed just weeks before the contest, exclusive control over a stablecoin expected to channel billions in liquidity on the exchange.

The decision, confirmed by Native Markets‘ co-founder Max Fiege on Sept. 14, caps a nine-day process that drew multiple heavyweight competitors like Paxos and Frax, demonstrating the stakes of capturing Hyperliquid’s (HYPE) fast-growing markets.

A contested race with high rewards

Hyperliquid launched the USDH competition on Sept. 5, inviting proposals for a Hyperliquid-first stablecoin designed to reduce the platforms reliance on USDC and USDT.

Eight teams participated, including well-known issuers with institutional relationships and regulatory credentials. However, Native Markets, backed by Fiege and a group DeFi veterans, led in validator support with over 70% of the delegated stake at the end of voting.

The proposal promises to issue USDH directly on HyperEVM, with reserves split between on-chain partners like Superstate and off-chain custodians like BlackRock. Half of the reserve yield will be used to fund HYPE token buybacks, while the other half will be used to 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.hl (@fiege_max) September 14, 2025

Analysts estimate that the structure could generate hundreds of millions of dollars annually, which would be very advantageous for both the exchange community and the issuer.

Community reaction and next steps

There was some controversy surrounding the process. Haseeb Qureshi of Dragonfly was among the critics who claimed that despite stronger bids from more established institutions, the vote went in favor of Native Markets. Others expressed worries about concentration, pointing out that one validator wallet allegedly held 15% of the total.

Still, Ethena (ENA) founder Guy Young, whose team withdrew earlier in the contest, defended the outcome as a genuine reflection of Hyperliquids grassroots governance.

Native Markets now faces the challenge of delivering quickly. Fiege announced that both HIP-1 and ERC-20 versions of USDH will be deployed within days, starting with capped mint and redeem tests of $800 per transaction before opening to unlimited flows.

A USDH/USDC spot market is also planned, alongside an API rollout for high-volume traders. Circle, sensing the competitive pressure, has already announced native USDC deployment on Hyperliquid.

The ruling represents a turning point for Hyperliquid in its efforts to increase its independence from legacy issuers and internalize stablecoin yield. For decentralized finance, it demonstrates how billion-dollar markets can be shaped by validator-led governance, despite ongoing concerns about decentralization and fairness.