Native Markets Wins Race for Hyperliquid Stablecoin USDH, Beating Paxos and Rivals

Native Markets has secured the USDH ticker for Hyperliquid’s native stablecoin, emerging as the winner in a heated governance vote that drew bids from heavyweights including Paxos and Ethena.

Key Takeaways:

• Native Markets won the USDH stablecoin bid for Hyperliquid, defeating Paxos and other rivals.
• Paxos failed to gain traction despite a revised proposal offering deep PayPal integration, incentives, and capped revenue share.
• Native Markets plans a phased USDH rollout, backed by validator support and a reserve strategy involving BlackRock and Superstate.

The decision, finalized Sunday, followed weeks of speculation and community debate, with Native Markets ultimately pulling ahead after validator commitments and prediction markets heavily favored the team.

Ethena, once seen as a top contender, exited the race on Thursday, citing community concerns about its non-native infrastructure.

Paxos remained in contention but failed to gain momentum despite revising its proposal midweek.

Paxos’ Version 2 pitch included a deep integration of USDH into PayPal and Venmo, zero-cost on/off-ramps, and a $20 million incentive plan.

It also commited all USDH revenue to Hyperliquid’s growth until $1 billion in total value locked (TVL) is reached, with Paxos capping its own share at 5% beyond $5 billion.

Criticism emerged over the process itself. Some observers argued the compressed RFP timeline and validator links to Hyperliquid infrastructure may have given Native Markets an edge.

Still, the vote concluded with broad validator backing and strong odds on prediction platform Myriad.

Founder Max Fiege announced a phased rollout plan beginning with the submission of a Hyperliquid Improvement Proposal.

The launch will include limited minting and redemption trials, capped at $800 per user, to test core functions before opening a USDH/USDC spot market and eventually unlocking full access.

Native Markets has been awarded the USDH ticker on Hyperliquid.

Thank you to all HYPE stakers and network validators for their time and effort in reviewing the proposals put forward.

Native Markets pitched a tightly integrated stablecoin strategy tailored to Hyperliquid. Reserves in cash and US Treasuries will be managed off-chain by BlackRock, while on-chain tokenized assets will be handled via Superstate and Stripe’s Bridge infrastructure.

Notably, the team pledged to split all reserve yield between Hyperliquid’s Assistance Fund and broader ecosystem growth.

The team’s credibility was bolstered by backers with experience at Uniswap Labs, Paradigm, and Polychain. Early endorsements from validator groups such as CMI Trading helped further solidify support.

The recent passage of the GENIUS Act, signed by President Trump, aims to cement the dollar’s dominance by backing dollar-pegged stablecoins in global markets.

The Treasury Department expects the stablecoin market to exceed $2 trillion by 2028, a projection that places greater emphasis on liquidity, interoperability, and regulatory alignment across the ecosystem. Tether’s latest move underscores a pragmatic shift toward that future.

As reported, Ripple CEO Brad Garlinghouse has said the stablecoin sector is poised for explosive growth, projecting the market could balloon from its current $250 billion capitalization to as much as $2 trillion in the near future.

“Many people think it will reach $1 to $2 trillion in a handful of years,” Garlinghouse said, adding that Ripple is positioned to benefit from that trajectory.

Meanwhile, Western Union is positioning itself for a new phase of digital transformation, signaling strong interest in using stablecoins to modernize its global remittance operations.

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