Native Markets Secures USDH Ticker for Hyperliquid Stablecoin
By: Eliza Bennet
In a pivotal move for the Hyperliquid ecosystem, Native Markets has been awarded the USDH ticker, allowing it to issue the network's native stablecoin. This decision follows a governance vote by validators on the Hyperliquid network, marking a significant achievement for Native Markets amidst formidable competition. The proposal put forward by Native Markets resonated with the community, thanks to its detailed reserve structure and robust compliance measures.
Validators and HYPE stakers gave their backing to Native Markets over other prominent contenders, such as Ethena, Paxos, and Agora. Native Markets successfully outlined a comprehensive plan that involved the issuance of USDH directly on Hyperliquid's HyperEVM network. The stablecoin is set to be fully backed by US Treasuries and cash, with on-chain assets managed by Superstate and off-chain reserves initially held by BlackRock. This approach aims to address the $200 million in annual value leakage that Hyperliquid has faced, ensuring financial solidity and trust in the system.
One of the critical elements of Native Markets' proposal is the compliance framework, which involves the use of Bridge for issuance processes. This platform holds necessary money transmission and MSB licenses across the US and Europe, showcasing a commitment to regulatory standards. Revenue generated from the stablecoin reserves will see a strategic division; half will be allocated to HYPE buybacks and Assistance Fund, while the remainder will be used to drive wider adoption of USDH.
Moving forward, Native Markets plans a phased rollout of the USDH stablecoin. Initially, a testing phase will be conducted where users can mint and redeem USDH in limited transactions, capped at $800. Upon successful completion, Native Markets will activate the USDH/USDC spot order book, allowing for unlimited transactions. This careful approach aims to integrate USDH smoothly into Hyperliquid's ecosystem, ensuring robust liquidity for traders and instilling confidence in the stablecoin's functionality.
