Native Markets has secured one of the most sought-after roles in decentralized finance, winning the community vote to issue Hyperliquid’s new USDH stablecoin.
Summary
- Native Markets won Hyperliquid’s validator vote to issue the USDH stablecoin, beating out established competitors like Paxos and Frax.
- The proposal splits reserve yield between HYPE buybacks and ecosystem growth.
- While critics flagged validator concentration, supporters called the result a win for Hyperliquid’s community-driven governance.
Native Markets has been awarded the USDH ticker following a validator-led governance vote. The outcome gives the young startup, formed just weeks before the contest, exclusive control over a stablecoin expected to channel billions in liquidity on the exchange.
The decision, confirmed by Native Markets’ co-founder Max Fiege on Sept. 14, caps a nine-day process that drew multiple heavyweight competitors like Paxos and Frax, demonstrating the stakes of capturing Hyperliquid’s (HYPE) fast-growing markets.
A contested race with high rewards
Hyperliquid launched the USDH competition on Sept. 5, inviting proposals for a Hyperliquid-first stablecoin designed to reduce the platform’s reliance on USDC and USDT.
Eight teams participated, including well-known issuers with institutional relationships and regulatory credentials. However, Native Markets, backed by Fiege and a group DeFi veterans, led in validator support with over 70% of the delegated stake at the end of voting.
The proposal promises to issue USDH directly on HyperEVM, with reserves split between on-chain partners like Superstate and off-chain custodians like BlackRock. Half of the reserve yield will be used to fund HYPE token buybacks, while the other half will be used to support ecosystem development.
