Quick Breakdown:
- Hyperliquid introduces USDH, a cash- and U.S. Treasury-backed stablecoin.
- Native Markets wins issuance rights after a competitive validator vote.
- USDH will provide collateral across Hyperliquid’s network to strengthen liquidity and reduce reliance on external stablecoins.
Hyperliquid has launched its first native stablecoin, USDH, following a closely watched governance vote that captured widespread attention across the crypto industry. The dollar-pegged token is designed to reduce the network’s dependence on external stablecoins while keeping yield opportunities inside Hyperliquid’s decentralized ecosystem.
— Bybit (@Bybit_Official) September 25, 2025
Native markets win issuance rights
Native Markets, a startup backed by prominent crypto investors, secured the right to issue USDH after a competitive bidding process that drew proposals from Paxos, Frax, and Curve. The vote was marked by sharp debate, with some participants questioning whether the process favoured Native Markets. Despite the controversy, the plan received more than two-thirds support from validators. According to Hyperliquid, USDH will be fully backed by cash and U.S. Treasuries and integrated through Stripe’s Bridge platform to provide robust liquidity and transparent reserves.
Boosting on-chain liquidity and stability
Once fully deployed, USDH will serve as collateral across Hyperliquid’s trading network, offering users a stable medium of exchange without relying on third-party stablecoins such as USDC or USDT. By anchoring the token to U.S. dollar reserves and leveraging Hyperliquid’s validator network, the project aims to provide a secure, low-volatility asset that strengthens on-chain liquidity and broadens yield opportunities for traders and validators.
The contentious governance process highlights the growing competition within the stablecoin sector, where protocols are racing to control issuance rights and infrastructure for trusted, regulated digital dollars. With USDH now live, Hyperliquid is positioning itself as a more self-sufficient DeFi platform and signaling its ambition to challenge dominant stablecoin providers in an increasingly crowded market.
Meanwhile, Bybit’s latest Crypto Insights report highlights the explosive growth of decentralized perpetual exchanges and examines how newcomer Aster is mounting a challenge to Hyperliquid’s lead through speed, liquidity, and aggressive market incentives. Despite Aster’s rapid ascent, Hyperliquid remains the dominant decentralized perp DEX with about $200 billion in September trading volume and a $13.2 billion market cap.
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