Recent reports indicate that Native Markets has been selected by the Hyperliquid ecosystem to issue the USDH stablecoin after a validator-led governance vote. This decision will allow control over USDH, reducing reliance on USDC and USDT.
Voting Process and Competing Proposals
Hyperliquid launched the USDH contest on September 5, inviting proposals from known stablecoin issuers and DeFi firms. Native Markets emerged victorious despite strong competition from entities like Paxos, Frax, and Ethena, receiving over 70% of delegated validator support by the end of the voting.
Structure and Rollout Plan of USDH
The USDH proposal from Native Markets outlines a reserve structure split between off-chain and on-chain components. Off-chain reserves will be in cash and U.S. Treasury equivalents managed by BlackRock, while on-chain reserves will be handled via Superstate using Stripe’s Bridge infrastructure.
Risks and Potential of USDH
The introduction of USDH in Hyperliquid is expected to change the landscape of stablecoin usage and governance. However, there are concerns regarding validator concentration and potential challenges in transitioning from testing to full-scale issuance.
USDH is anticipated to have a significant impact on the Hyperliquid ecosystem, provided that it maintains technical stability and community trust.
