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Highlights
- Hyperliquid’s USDH stablecoin is set to launch in the coming days following Native Markets’ governance victory.
- Native Markets confirmed the rollout will begin with HIP-1 deployment and capped trial transactions of $800 per mint or redemption.
- BlackRock and Superstate will manage USDH reserves, combining off-chain Treasuries and tokenized on-chain backing.
Hyperliquid’s USDH stablecoin is set to launch in the market in the coming days. This comes after Native Markets emerged as the winners of the stablecoin bid.
Native Markets Secures USDH Stablecoin Mandate
The Native Markets proposal to manage the USDH rollout has been accepted by HYPE stakers on Hyperliquid. The win came despite claims that the firm may have benefited from the short proposal window and strong validator relationships.
In a recent X post, Native Markets co-founder Max Fiege confirmed this development. He disclosed that the deployment of the USDH HIP-1 and related ERC-20 contract will precede the launch. This will be put into effect in the next few days.
Before expanding to wider adoption, the team will start a controlled trial that permits transactions up to $800 per mint or redemption.
During this initial phase, select traders will test the stablecoin’s infrastructure. This will include high-volume participants invited to stress-test the platform’s API. If the rollout is successful, a USDH/USDC spot order book will be added. Transaction caps will be lifted as a result. This would allow uncapped mints and redeemables.
The team’s chances of winning were earlier predicted by Polymarket to be more than 90%. This indicates that their bid was characterized by considerable confidence and momentum.
Native Markets’ Strategic Design and Reserve Backing
The firm’s proposal resonated with validators for its structured approach to reserves and yield-sharing. BlackRock will manage off-chain reserves in cash and U.S. Treasuries. Superstate, supported by Bridge and Stripe’s stablecoin system, will handle the tokenized reserves on the blockchain.
Confidence in the project extends beyond the network. VanEck CEO Jan van Eck recently shared optimism about Hyperliquid’s ecosystem as it prepares for stablecoin expansion.
Notably, Native Markets has committed to splitting reserve earnings equally between ecosystem development and Hyperliquid’s Assistance Fund. This decision may help ensure its long-term success. Additionally, seasoned experts with backgrounds at Uniswap Labs, Paradigm, and Polychain support the proposal.
It is also worth mentioning that Kraken confirmed plans to list USDH and the native HYPE token on its platform, adding to its bullish narrative.
The new stablecoin might compete with Circle’s USDC, which is currently the most liquid option on Hyperliquid. However, Hyperliquid has said it will still support USDC and other dollar-pegged assets if they meet specific requirements.
These involve maintaining sufficient liquidity depth, keeping a strong peg, and holding a $10 million HYPE stake. The management of USDH by Native Markets is an important step for Hyperliquid as it aims to strengthen its position in the competitive stablecoin market.
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