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

11 Sep, 2025 Updated 11 Sep, 2025

By Jane Lubale

Senior Author

Expertise : Crypto, Blockchain, Web3, Artificial Intelligence (AI)

Jane Lubale is a crypto journalist and content writer at CoinGape, with a strong focus on blockchain, cryptocurrency, FinTech, and Web3 narratives. Jane holds a Master’s in Business Administration, and a degree in Marketing, and blends this background with her passion for market research and digital marketing to deliver engaging price analysis, thought leadership, and educational content. Her work has also been published in leading crypto media such as Insidebitcoin, where she has contributed to the growing conversation around decentralized technologies. With 5+ years of experience in Decentralized Finance (DeFi), Jane's writing is driven by a mission to educate and empower readers with insights that cut through hype and deliver true value. She achieves this in the form of trading strategies, regulatory updates, or blockchain adoption trends. Away from the keyboard, Jane is a proud mother of three boys and is often found mentoring young people on career paths, personal development, and life choices, as well supporting needy teens complete school. She holds modest investments in cryptocurrency, reflecting her belief in the future of digital finance.

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CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

Hyperliquid’s USDH Stablecoin and HYPE to Launch on Kraken;

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.

HYPE Token One-Day Price chart — HYPE Token One-Day Price Chart (Source: CoinMarketCap)

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.

Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.

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Frequently Asked Questions (FAQs)

1. What is USDH?

USDH is Hyperliquid’s stablecoin, pegged to the U.S. dollar and designed to increase liquidity within its ecosystem.

2. What is HYPE’s purpose?

HYPE is Hyperliquid’s governance token, enabling validator voting and benefiting from USDH buyback incentives.

3. Why does Kraken’s potential listing matter?

It could give Hyperliquid wider exposure, free USD ramps, and institutional access via Paxos’s PayPal and Venmo integrations.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.