Hyperliquid’s USDH Stablecoin and HYPE to Launch on Kraken; Here’s All You Need to Know!

Kraken is planning to list Hyperliquid USDH stablecoin alongside its native HYPE token. Should the listing be approved, the tokens could start trading immediately after the launch. Backed by Paxos Labs, a leading stablecoin issuer and one of the USDH bidders, this development highlights a major shift for Hyperliquid. Let’s break down the details and why it matters.

What Are Hyperliquid USDH Stablecoin and HYPE?

Hyperliquid recently launched USDH, its native dollar-pegged stablecoin. It is unique among other stablecoins for its focus on boosting liquidity and adoption within the Hyperliquid ecosystem. Having managed over $160 billion in tokenized assets, Paxos is pushing its proposal to issue USDH.

It proposes allocating 95% of the USDH reserve interest to buy back HYPE tokens and redistributing value to protocols, users, and validators. In case the stablecoin replaces the $5.5 billion worth of USDC currently deposited on Hyperliquid, buybacks could generate nearly $191 million annually.

On the other hand, HYPE, Hyperliquid’s native token, is currently trading around $53.33, a drop of 1.77% in the past 24 hours. It has reacted sideways to the expectation of the market regarding the Kraken listing news.

The token is used for governance and voting rights on decisions such as the rollout of USDH. Since Paxos is already providing the backend for PayPal and Venmo’s crypto services, integrating HYPE could ease trading, boost liquidity, and enhance institutional access.

Hyperliquid USDH Stablecoin Listing: Why It Matters

Two key factors highlight why this listing is important.:

Hyperliquid Rapid Growth

Hyperliquid has quickly risen to be dominant in DeFi, with a 70% share of the perpetual futures market. Last month, it recorded approximately $383 billion in trading volume. Traders favour Hyperliquid for its efficient on-chain order book and zero gas fees. Kraken’s move to list USDH and HYPE, with free USD on/off ramps, could attract more users, boosting its adoption.

Kraken 🤝 @HyperliquidX 🤝 @Paxos@krakenfx has offered to list Paxos-issued USDH (with free USD on/off ramps) + HYPE from Day 1.

*Pending approval following Kraken’s standard listing diligence process pic.twitter.com/qBo7fo9KRW

— Kraken (@krakenfx) September 11, 2025

Paxos’s Competitive Edge

Paxos is a top contender for the Hyperliquid USDH Stablecoin issuer bid. Should Kraken list Paxos-issued USDH, it could boost its winning chances against its competitors, such as Agora and Frax Finance. Recently, it updated its proposal to include a $20 million incentive program and integrations with PayPal and Venmo.

Final Thoughts: What’s Next?

Kraken will review Hyperliquid’s USDH Stablecoin and HYPE for compliance and stability. If approved, the tokens will join Kraken’s trading platform, connecting directly to Hyperliquid’s mainstream finance. As USDH focuses on driving liquidity and HYPE for buybacks and governments, this launch could reshape DeFi in a big way.