{"id":528317,"date":"2025-09-15T13:45:46","date_gmt":"2025-09-15T08:15:46","guid":{"rendered":"https:\/\/ambcrypto.com\/?p=528317"},"modified":"2025-09-15T14:56:26","modified_gmt":"2025-09-15T09:26:26","slug":"usdh-arrives-can-hyperliquids-new-stablecoin-shake-usdcs-6b-grip","status":"publish","type":"post","link":"https:\/\/ambcrypto.com\/usdh-arrives-can-hyperliquids-new-stablecoin-shake-usdcs-6b-grip\/","title":{"rendered":"USDH arrives &#8211; Can Hyperliquid\u2019s new stablecoin shake USDC\u2019s $6B grip?"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<h3><em>Who won the race for Hyperliquid\u2019s USDH stablecoin ticker?<\/em><\/h3>\n<p>Native Markets secured the USDH ticker, winning nearly 70% of validator votes in Hyperliquid\u2019s first major on-chain governance process.<\/p>\n<h3><em>Which firms did Native Markets beat?<\/em><\/h3>\n<p>It outpaced bids from Paxos, BitGo, and Ethena, with prediction markets showing overwhelming support for Native Markets toward the end of the race.<\/p>\n<hr \/>\n<p><span style=\"font-weight: 400;\">The race to secure the USDH stablecoin ticker on <a href=\"https:\/\/ambcrypto.com\/hyperliquid-caught-between-36-support-and-50-resistance-where-next\/\" target=\"_blank\" rel=\"noopener\">Hyperliquid [HYPE]<\/a> has officially come to an end.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">After a week of competitive bidding, Hyperliquid\u2019s validator community voted in favor of Native Markets, granting the firm the rights to issue and manage the exchange\u2019s U.S. dollar stablecoin, USDH.<\/span><\/p>\n<h2>Native Markets wins the USDH ticker<\/h2>\n<p><span style=\"font-weight: 400;\">Max Fiege, founder of Native Markets, took to X and <a href=\"https:\/\/x.com\/fiege_max\/status\/1967262690444984463\" target=\"_blank\" rel=\"noopener\">noted<\/a>,\u00a0<\/span><\/p>\n<blockquote><p><span style=\"font-weight: 400;\">\u201cWe will be deploying both the USDH HIP-1 and corresponding ERC-20 within days. We will then start with a testing phase for mints and redeems of up to $800\/tx with an initial group, to be followed by the opening of the USDH\/USDC spot order book as well as uncapped mints &amp; redeems.\u201d<\/span><\/p><\/blockquote>\n<p><span style=\"font-weight: 400;\">For the uninitiated, Native Markets moved quickly, submitting the initial proposal for USDH just 90 minutes after Hyperliquid issued the call, later refining its plan in response to community feedback.<\/span><\/p>\n<p><span style=\"font-weight: 400;\"> The Hyperliquid Foundation itself abstained from voting, leaving the decision entirely to validators.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This contest to secure the USDH ticker marks the exchange\u2019s first major on-chain governance vote beyond routine token listings. <\/span><\/p>\n<h2>Other competitors<\/h2>\n<p><span style=\"font-weight: 400;\">Despite competition from established players like <a href=\"https:\/\/ambcrypto.com\/worldcoin-treasury-push-sparks-100-price-gains-but-how-far-is-the-ath-now\/\" target=\"_blank\" rel=\"noopener\">Paxos<\/a>, BitGo, and <a href=\"https:\/\/ambcrypto.com\/predictions\/ethena-price-prediction\" target=\"_blank\" rel=\"noopener\">Ethena [ENA]<\/a>, Native Markets emerged as the clear frontrunner throughout the weeklong campaign. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">On-chain trackers <a href=\"https:\/\/www.usdhtracker.xyz\/\" target=\"_blank\" rel=\"noopener\">show<\/a> that its proposal ultimately secured about 70% of validator votes, compared to 20% for Paxos and just 3.2% for Ethena. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Most bidders had pledged to direct stablecoin yields back into the Hyperliquid ecosystem, whether through contributions to the Hyperliquid Assistance Fund, ecosystem growth initiatives, or direct token repurchases.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Momentum firmly swung in Native Markets\u2019 favor late in the process. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">After Ethena <a href=\"https:\/\/x.com\/gdog97_\/status\/1966137801650614362\" target=\"_blank\" rel=\"noopener\">withdrew<\/a> from the race recently, prediction markets like <a href=\"https:\/\/polymarket.com\/event\/who-will-win-the-usdh-ticker-159?tid=1757621015488\" target=\"_blank\" rel=\"noopener\">Polymarket<\/a> gave Native Markets over a 99% chance of victory by Saturday.<\/span><\/p>\n<h2>Controversy alert!<\/h2>\n<p><span style=\"font-weight: 400;\">Still, the outcome was not without controversy.<\/span><\/p>\n<p><span style=\"font-weight: 400;\"> Critics, including Haseeb Qureshi, managing partner at Dragonfly Capital, <a href=\"https:\/\/ambcrypto.com\/hyperliquid-stablecoin-battle-raises-backroom-deal-allegations-why\/\" target=\"_blank\" rel=\"noopener\">questioned<\/a> the selection process, raising concerns about fairness and long-term implications for governance on Hyperliquid.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Quershi observed,\u00a0<\/span><\/p>\n<blockquote><p><span style=\"font-weight: 400;\">\u201cHearing from multiple bidders that none of the validators are interested in considering anyone besides Native Markets. It&#8217;s not even a serious discussion, as though there was a backroom deal already done.\u201d\u00a0<\/span><\/p><\/blockquote>\n<h2>Will USDH rule USDC?<\/h2>\n<p><span style=\"font-weight: 400;\">With the launch of USDH, Circle\u2019s <a href=\"https:\/\/ambcrypto.com\/category\/stablecoins\/\" target=\"_blank\" rel=\"noopener\">USD Coin [USDC]<\/a>, the dominant dollar-backed asset on the network, is facing fresh competition. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, data from DeFiLlama <a href=\"https:\/\/defillama.com\/stablecoin\/usd-coin\" target=\"_blank\" rel=\"noopener\">shows<\/a> nearly $6 billion in USDC reserves remain on the platform, underscoring its entrenched position.<\/span><\/p>\n<p><span style=\"font-weight: 400;\"> Still, Hyperliquid has made it clear that USDC and other stablecoins will continue to be supported as quote assets. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, they have to meet requirements such as a 200,000 HYPE stake (approximately $10 million), a strong peg to $1, and sufficient liquidity depth against both USDC and HYPE.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Even so, market sentiment suggests ripples are already being felt. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Circle\u2019s stock has slipped notably, <a href=\"https:\/\/ambcrypto.com\/were-funding-our-competitor-solana-eyes-sol-backed-stablecoin\/\" target=\"_blank\" rel=\"noopener\">falling<\/a> 16% since the USDH initiative was announced, and most recently trading at $125.32 after a 6.27% daily decline, according to <a href=\"https:\/\/finance.yahoo.com\/quote\/CRCL\/?guccounter=1&amp;guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&amp;guce_referrer_sig=AQAAAE48N8bsj02PEImSnZYLMXpqs8FsEjPflGqhnPOp7bVLr1CT5c-ozaFQQj2MMuuRc47EXvimHN-tlK_k2f38lLzUEI7Bu53c-WLCceEw-x3unpF68kRPzvlBfr7GthgQjxlDg-ZFxCI1UNxXYYLU7KoO04IL_dgGl0l4WlpJtzaX\" target=\"_blank\" rel=\"noopener\">Yahoo Finance<\/a>.<\/span><\/p>\n<p><span style=\"font-weight: 400;\"> The HYPE token has also experienced modest pressure, dropping 1.09% in the past 24 hours to $54.02, according to <a href=\"https:\/\/coinmarketcap.com\/currencies\/hyperliquid\/\" target=\"_blank\" rel=\"noopener\">CoinMarketCap<\/a>. <\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Could this be the first crack in USDC\u2019s long-held dominance?<\/p>\n","protected":false},"author":66,"featured_media":528340,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"om_disable_all_campaigns":false,"footnotes":""},"categories":[66,3,4,5825,20],"tags":[6427],"class_list":["post-528317","post","type-post","status-publish","format-standard","has-post-thumbnail","category-new-news","category-news","category-social","category-stablecoins","category-trading-view","tag-ambcrypto"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v28.0 (Yoast SEO v28.4) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>USDH arrives - Can Hyperliquid\u2019s new stablecoin shake USDC\u2019s $6B grip? 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