Native Markets Wins USDH Stablecoin Contract in Hyperliquid Governance Vote
Native Markets has officially secured the USDH stablecoin ticker following a competitive governance vote on Hyperliquid. The ecosystem team emerged victorious after a week-long battle against established industry players, including Paxos, Ethena, and BitGo.
In July, Hyperliquid’s decentralized exchange handled $330 billion in trading volume with an 11-person team. The platform launched its layer-1 blockchain in November 2024 and needed its first native dollar-pegged asset. USDH will provide traders with a stable unit of account for perpetual futures trading.
USDH Governance Process Sets New Standard
The selection process represented a significant governance milestone, with validators choosing the issuer through a transparent on-chain vote. The stakeholder-weighted vote ran from September 11 to September 14, 2025, ensuring alignment with long-term ecosystem interests. The Hyperliquid Foundation maintained neutrality by abstaining from voting.
Native Markets secured 30.8% of the delegated stake, supported by heavyweight validators infinitefield.xyz and Alphaticks. Paxos trailed as the second-largest contender with 7.6% of the stake. The voting process sparked controversy as some observers questioned Native Markets’ rapid accumulation of validator support.
Native Markets USDH Implementation Strategy
Native Markets will issue USDH natively on Hyperliquid’s HyperEVM network with reserves managed across off-chain and on-chain assets. The stablecoin will be fully backed and utilize Bridge, the platform acquired by Stripe in 2024, for reserve management.
Native Markets plans to split the yield from reserves equally between USDH growth partnerships and the Assistance Fund. The Assistance Fund serves as a protocol-driven buyback mechanism for HYPE tokens. The team aims to begin testing within days of securing the ticker.
Competitive Landscape for USDH Stablecoin Market
The battle for USDH attracted significant attention from major crypto firms. Institutional players like Paxos and BitGo submitted competitive bids for the stablecoin ticker. Ethena initially competed but later withdrew from the race, clearing Native Markets’ path to victory.
Hyperliquid’s decision could redirect significant Treasury yield and impact its $5.5 billion USDC holdings. The platform currently relies heavily on USDC for trading operations. USDH represents an opportunity to capture more value within the ecosystem through native stablecoin issuance.
USDH Launch Timeline and Market Impact
Native Markets received the USDH ticker award on Sunday, following the conclusion of the governance vote. The company now faces the challenge of building market adoption against established stablecoins like USDC and USDT. Success will depend on integration with Hyperliquid’s trading infrastructure and broader DeFi ecosystem adoption.
The stablecoin launch represents a critical test for Hyperliquid’s governance model. Community-driven decision-making through validator voting sets a precedent for future protocol upgrades. Native Markets must now deliver on promises made during the competitive bidding process.
Conclusion
Native Markets’ victory in the USDH stablecoin race marks a significant milestone for Hyperliquid’s ecosystem development. The governance vote demonstrated transparent decision-making while positioning the platform for greater financial independence. USDH’s success will depend on execution quality and market acceptance in the competitive stablecoin landscape.
