KEY FACTS: Hyperliquid, a leading decentralized derivatives platform, launched its native USDH stablecoin on September 24, 2025, following a highly competitive bidding process won by Native Markets, a startup led by industry veterans Max Fiege, Mary-Catherine Lader, and Anish Agnihotri. USDH, fully collateralized and integrated into Hyperliquid’s HyperEVM layer, aims to reduce reliance on external stablecoins like USDC, with nearly $2 million in early trading volume on the USDH/USDC pair. The stablecoin’s reserves, managed via Stripe’s Bridge platform, will generate yield to fund HYPE token buybacks and ecosystem grants, reinforcing Hyperliquid’s $330 billion monthly trading ecosystem.
Source: Hyperliquid
Hyperliquid's USDH Stablecoin goes Live in Partnership with Native Market
Hyperliquid, the high-performance blockchain platform renowned for its perpetual futures trading, has officially unveiled its native stablecoin, USDH. The launch, which occurred on Wednesday, September 24, 2025, marks the culmination of a highly competitive and occasionally contentious bidding process that drew bids from some of the biggest names in the crypto stablecoin space. With an initial trading pair against USDC already active, USDH has clocked nearly $2 million in early trading volume, signaling strong initial interest from traders seeking a reliable, ecosystem-native dollar-pegged asset.
This development is a strategic pivot for Hyperliquid, a platform that has quietly emerged as a powerhouse in DeFi derivatives. Hyperliquid is minting USDH directly on its HyperEVM layer to reduce dependency on external stablecoins like Circle's USDC and retain economic value, including yield generation, firmly within its borders. As the crypto market continues to mature, with total DeFi TVL hovering around $100 billion as of late September, innovations like USDH underscore the growing emphasis on self-sovereign financial primitives that empower users without intermediaries.
Founded as a decentralized derivatives exchange, Hyperliquid exploded onto the scene in November 2024 with the airdrop of its native HYPE token, which quickly surged in value and distributed billions in value to early users. By July 2025, Hyperliquid was processing an astonishing $330 billion in monthly trading volume, achieved with a lean team of just 11 employees. This efficiency has positioned it as a darling of the DeFi world, often compared to centralized giants like Binance for its speed and low fees, but with the transparency and decentralization that blockchain enthusiasts crave.
At the heart of Wednesday's launch is USDH, a fully collateralized stablecoin designed to serve as both a unit of account and collateral across Hyperliquid's network. Traders can now access the asset via the platform's trading interface at app.hyperliquid.xyz, where the USDH/USDC pair has already seen brisk activity. Early metrics suggest that the stablecoin is holding its peg tightly to the U.S. dollar, backed by a conservative mix of cash reserves and short-term U.S. Treasury equivalents. This backing strategy not only ensures stability but also positions USDH to generate yield through traditional finance instruments, a portion of which will flow back into the Hyperliquid ecosystem.
The issuance and management of USDH have been entrusted to Native Markets, a crypto startup that emerged victorious from the bidding war. Led by a trio of industry heavyweights—Max Fiege, a key Hyperliquid investor; Mary-Catherine Lader, former president of Uniswap Labs; and Anish Agnihotri, a prominent blockchain researcher, Native Markets will oversee the stablecoin's operations. In a nod to community governance, the firm was selected via a validator vote on September 14, 2025, securing over two-thirds of the votes in Hyperliquid's inaugural major governance decision. Native Markets has committed to minting USDH natively on HyperEVM, Hyperliquid's Ethereum Virtual Machine-compatible execution layer, which enables seamless circulation and smart contract interactions across the network.
Under the terms of their proposal, Native Markets will leverage Bridge, Stripe's innovative tokenization platform, to handle reserve management. This partnership bridges traditional finance with DeFi, allowing for real-time transparency into USDH's backing assets. Revenue from reserves will be split equally: half directed toward buybacks of the HYPE token to bolster its value, and the other half funneled into ecosystem grants and development initiatives.
The path to USDH's launch was paved with fierce competition, drama, and debates that captivated the crypto Twitter sphere. On September 5, 2025, Hyperliquid announced an open governance process to award the coveted USDH ticker, igniting what would become one of the most talked-about stablecoin races in DeFi history. The request for proposals (RFP) invited entities to bid on issuance rights, promising oversight of potentially billions in stablecoin flows, a prize that could redefine market positioning in the $150 billion stablecoin sector.
Native Markets wasted no time, submitting their bid mere hours after the announcement. Their proposal outlined a robust framework: native HyperEVM integration, diversified reserves, and a revenue-sharing model that aligned incentives with HYPE holders. But they were not alone for long. Within days, a barrage of heavy hitters piled in: Paxos, the regulated issuer behind BUSD and PYUSD; Sky (formerly MakerDAO), stewards of the DAI stablecoin; Frax Finance, known for its algorithmic FRAX; Agora, a rising star in real-world asset tokenization; Curve Finance, the DeFi liquidity protocol; OpenEden, focused on tokenized Treasuries; and BitGo, a custody giant. Even Ethena, the synthetic dollar innovator behind USDe, threw its hat in the ring, only to withdraw and endorse Native Markets just days later, citing alignment on vision and execution.
Native Markets clinched the deal with a commanding 68% approval rate, ushering in USDH's era and validating Hyperliquid's experimental approach to on-chain decision-making. The vote also highlighted a broader trend in DeFi: the shift toward token-weighted governance that empowers smaller, agile players over bureaucratic behemoths.
As USDH integrates into Hyperliquid's perpetuals marketplace, its impact could ripple far beyond trading pairs. By providing a native stablecoin, the platform addresses a key pain point in DeFi derivatives: collateral fragmentation. Traders previously relied on bridged assets like USDC or USDT, exposing them to cross-chain risks and siphoning fees to external issuers. USDH changes that, enabling atomic settlements and reducing slippage in high-volume environments. Early adopters are already experimenting with it as margin collateral, potentially unlocking billions in locked liquidity.
Moreover, the yield mechanics baked into USDH's design could supercharge HYPE's utility. With reserve income funding buybacks, the token—currently down about 7% over the past week to around $25 per CoinGecko data—might see upward pressure as adoption grows. Analysts speculate that if USDH captures even 1% of Hyperliquid's $330 billion monthly volume, it could generate tens of millions in annual yield, a boon for stakers and developers alike.
This launch comes at a pivotal time for stablecoins. Regulators worldwide are scrutinizing the sector, with the EU's MiCA framework and potential U.S. legislation looming. Hyperliquid's choice of a regulated backing via Stripe's Bridge positions USDH well for compliance, potentially setting a template for other chains.
Information Sources:
If you found the article interesting or helpful, please hit the upvote button and share for visibility to other hive friends to see. More importantly, drop a comment below. Thank you!
This post was created via INLEO. What is INLEO?
INLEO's mission is to build a sustainable creator economy that is centered around digital ownership, tokenization, and communities. It's built on Hive, with linkages to BSC, ETH, and Polygon blockchains. The flagship application, Inleo.io, allows users and creators to engage & share micro and long-form content on the Hive blockchain while earning cryptocurrency rewards.
Let's Connect
Hive: inleo.io/profile/uyobong/blog
Twitter: https://twitter.com/Uyobong3
Discord: uyobong#5966