Hyperliquid Launches USDH Stablecoin on Native Markets

Hyperliquid has introduced its native stablecoin, USDH. According to the announcement, this followed a successful validator vote secured by Native Markets. Notably, the fiat-backed stablecoin is now operational on the HyperEVM blockchain. 

Benefits of Hyperliquid USDH Stablecoin

The launch features a USDH/USDC spot market on the Hyperliquid platform, which has already seen approximately $2.2 million in early trading volume. As a home-grown stablecoin, USDH is designed to serve as a stable, secure, and compliant medium of exchange within Hyperliquid’s rapidly growing ecosystem.

Importantly, USDH provides users with fast, low-cost transactions while maintaining full transparency and fiat-backed reserves. Its integration into the Hyperliquid trading infrastructure aims to improve liquidity, capital efficiency, and user confidence in stable on-chain value transfers.

According to Hyperliquid, USDH will also play a central role in future lending markets, derivatives trading, and DeFi protocols built on HyperEVM. The goal is to create a reliable alternative to external stablecoins.

Paxos Filed To Issue Hyperliquid’s USDH

Recall that earlier in the month, Paxos filed a proposal to issue USDH. The blockchain infrastructure also promised to allocate 95% of interest earnings from the USDH reserves toward HYPE token buybacks. 

Paxos planned to make the token fully compliant with the Guiding and Establishing National Innovation for US Stablecoins Act (GENIUS Act) and Markets in Crypto Assets (MiCA) regulatory standards. The announcement also reflects Paxos’ plan to accelerate the adoption of stablecoin within decentralized ecosystems.

It is worth noting that Paxos was perceived as the leading candidate for validator selection following its acquisition of Molecular Labs and its decade-long experience with stablecoins. Paxos has a track record of issuing stablecoins for other top companies like Binance, PayPal, Kraken, Robinhood, and OKX.

Hyperliquid’s Features Stand Out Among DEXes

According to recent reports, Hyperliquid controls almost 80% of the entire decentralized perpetual futures market. 

Interestingly, the decentralized exchange (DEX) has successfully become the leading decentralized perpetual futures platform. Hyperliquid stood out from the beginning due to its decision to start avoiding venture capital. 

Combined with timing, the decision gave the DEX an opening it exploited faster than most of its counterparts. Features like one-click trading, zero gas fees, and sub-second order finalization all make Hyperliquid feel closer to a centralized exchange than most DEXs.

This has been instrumental in attracting both retail and professional traders to the platform. Even with the public criticism from high-stakes crypto trader James Wynn, Hyperliquid has excelled.