Hyperliquid Set to Launch USDH Soon as Native Markets Wins Bid

Hyperliquid USDH stablecoin set to launch soon as Native Markets wins bid, with initial capped transactions and strong institutional backing.

Hyperliquid’s USDH stablecoin is set for a launch in the coming days, following Native Markets’ victory in the governance vote

The bid secured over 70% approval from HYPE stakers, giving Native Markets control over the USDH rollout. This development marks a step in Hyperliquid’s efforts to expand its ecosystem with a new stablecoin. USDH will begin with a controlled trial before it’s widely adopted.

Native Markets to Manage USDH Rollout

Native Markets will manage the USDH stablecoin launch, following a strong win in the governance vote.

The deployment of the USDH HIP-1 and related ERC-20 contracts will begin in the coming days. Initially, transactions will be capped at $800 per mint or redemption. This early phase aims to stress-test the platform with a select group of high-volume traders and users.

Once the initial trial is successful, the transaction caps will be lifted. This will allow for uncapped mints and redemptions, alongside the addition of a USDH/USDC spot order book.

The controlled rollout is seen as a precautionary step to ensure a smooth and scalable implementation of the stablecoin in the long term.

Strategic Design and Reserve Management for USDH

Native Markets’ proposal to manage USDH has received strong support due to its structured reserve management.

BlackRock will oversee off-chain reserves, including cash and U.S. Treasuries, while Superstate will handle tokenized reserves on the blockchain. This dual approach is designed to maintain the stability and reliability of the USDH stablecoin.

The proposal includes plans to split reserve earnings between ecosystem development and Hyperliquid’s Assistance Fund. This strategy aims to secure long-term sustainability for the USDH stablecoin.

Competition in the Stablecoin Market

As Hyperliquid prepares to launch USDH, the stablecoin may compete with existing options like Circle’s USDC.

However, Hyperliquid has emphasized that it will continue to support USDC and other dollar-pegged assets. To maintain its position in the market, USDH must meet specific requirements, including liquidity depth, peg stability, and a $10 million HYPE stake.

Hyperliquid’s approach to stablecoin management aims to strengthen its presence in a highly competitive market. With strong institutional backing and a carefully planned reserve system, USDH is set to play a role in the firm’s future.

The launch of USDH represents a critical phase for both Hyperliquid and Native Markets as they expand their presence in the stablecoin sector.