Share this article
Popular DEX Hyperliquid Moves Forward to Launch Proprietary Stablecoin
A proprietary stablecoin could reduce Hyperliquid's dependency on USDC and potentially capture a part of the revenues from reserve assets.
Sep 5, 2025, 8:08 p.m.
Make us preferred on Google
What to know:
- Popular decentralized exchange Hyperliquid is making steps toward launching its own U.S. dollar stablecoin with an upcoming governance vote, according to Discord post.
- Hyperliquid executed $398 billion perps trading volume and $20 billion spot trades, with Circle's USDC serving as primary liquidity on the marketplace.
- The goal is to create a "Hyperliquid-aligned, compliant stablecoin" that plugs directly into the network, the post said.
Decentralized exchange Hyperliquid is preparing to launch its own U.S. dollar stablecoin, according to a Friday announcement from the Hyperliquid Foundation on the platform's Discord server.
The protocol has reserved the ticker USDH, which validators will soon vote to allocate through an on-chain governance process, the announcement read. Teams interested in deploying USDH can submit proposals, and the winning group will be selected by validator quorum, the post added.
STORY CONTINUES BELOW
"The USDH ticker is well-suited for a Hyperliquid-first, Hyperliquid-aligned, and compliant USD stablecoin," it said.
Stablecoins are a crucial piece of infrastructure of crypto markets, serving as liquidity and trading pairs to settle most trades. It's a $270 billion asset class, currently dominated by Tether's USDT and Circle's USDC. However, with regulation put into place such as the GENIUS Act in the U.S., industry players increasingly create their own token for their ecosystems. Popular crypto wallet MetaMask is launching a stablecoin with infrastructure provider M0, while payment firm Stripe created its own in-house stablecoin with Bridge.
Hyperliquid’s trading activity suggests there could be immediate demand. The exchange handled $398 billion in perpetual derivatives trading volume and $20 billion in spot trades last month, DefiLlama data shows. Circle’s currently dominates liquidity, making up 95% of the $5.6 billion stablecoin supply on the network.
By introducing its own stablecoin, Hyperliquid, in theory, could reduce dependency on Circle while capturing revenue from assets backing the token.
Read more: Hyperliquid’s HYPE Token: Why Arthur Hayes Thinks It Has 126x Upside Potential
AI Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk's full AI Policy.
More For You
KuCoin captured a record share of centralised exchange volume in 2025, with more than $1.25tn traded as its volumes grew faster than the wider crypto market.
What to know:
- KuCoin recorded over $1.25 trillion in total trading volume in 2025, equivalent to an average of roughly $114 billion per month, marking its strongest year on record.
- This performance translated into an all-time high share of centralised exchange volume, as KuCoin’s activity expanded faster than aggregate CEX volumes, which slowed during periods of lower market volatility.
- Spot and derivatives volumes were evenly split, each exceeding $500 billion for the year, signalling broad-based usage rather than reliance on a single product line.
- Altcoins accounted for the majority of trading activity, reinforcing KuCoin’s role as a primary liquidity venue beyond BTC and ETH at a time when majors saw more muted turnover.
- Even as overall crypto volumes softened mid-year, KuCoin maintained elevated baseline activity, indicating structurally higher user engagement rather than short-lived volume spikes.
More For You
Ethereum Foundation makes post quantum security a top priority as new team forms
EF researcher Justin Drake says a new post-quantum team will drive wallet safety upgrades, research prizes and test networks as quantum timelines shorten.
What to know:
- The Ethereum Foundation has elevated post-quantum security to a top strategic priority, forming a dedicated Post Quantum team led by Thomas Coratger with support from leanVM cryptographer Emile.
- Researcher Justin Drake said Ethereum is shifting from background research to active engineering, including biweekly developer sessions on post-quantum transactions and multi-client post-quantum consensus test networks.
- The foundation is backing new cryptography with funding and outreach, launching two $1 million prizes, planning post-quantum community events and education, and stressing that blockchains must prepare early for quantum threats despite their long-term nature.
Top Stories
