USDH Stablecoin Goes Live on Hyperliquid with $2.2M Early Trading Volume – Can it Replace Tether?
Hyperliquid’s native stablecoin, USDH, launched on September 23 with $2.2 million in early buying and selling quantity.
The launch follows Native Markets’ victory in a aggressive governance vote that noticed the startup defeat established gamers, together with Paxos and Ethena Labs, for the suitable to concern USDH on the decentralized change.
Trading commenced with a USDH/USDC spot pair on HyperCore, whereas Native Markets reported over $15 million in pre-minted tokens ready for preliminary distribution.
The stablecoin maintained its $1.00 peg throughout early buying and selling periods, fluctuating solely to $1.001 as market contributors examined the brand new asset’s liquidity and stability mechanisms.
Native Markets Begins Controlled USDH Rollout
Native Markets structured the launch as a gradual enlargement, initially capping particular person transactions at $800 per consumer whereas core features endure real-world testing.
“USDH is now stay for all Hyperliquid customers,” the corporate introduced on social media, highlighting completion of each HIP-1 and ERC-20 token deployments.
Several integration phases will unfold over the approaching months, starting with HyperEVM integrations, adopted by the enlargement of USDH’s function as a spot quote asset.
Future developments embrace native minting straight on HyperCore and USDH-margined perpetual contracts via the proposed HIP-3 protocol improve.
The issuer structured USDH reserves utilizing money and short-term U.S. Treasury holdings managed off-chain by BlackRock, whereas on-chain tokenized belongings function via Superstate and Stripe’s Bridge infrastructure.
Meanwhile, Native Markets can also be dedicated to directing 50% of its reserve yield towards Hyperliquid’s Assistance Fund, with the remaining parts allotted for USDH ecosystem growth.
This revenue-sharing mannequin emerged from the corporate’s aggressive proposal that secured validator approval in opposition to better-known rivals throughout September’s governance course of.
Hyperliquid at the moment hosts over $5.5 billion in Circle’s USDC, representing roughly 8% of the token’s complete provide and producing an estimated $220 million yearly in treasury yield income for Circle.
Stablecoin Competition Intensifies as Platforms Pursue Revenue Independence
The USDH launch contributes to a broader shift inside defi, as buying and selling platforms search to cut back their dependence on exterior stablecoin issuers and seize reserve yield income internally.
Tether’s USDT at the moment dominates the market, with $173.05 billion in circulation, processing over $24.6 billion each day on TRON alone via roughly 2.4 million transactions, based on Coingecko’s data.
This infrastructure benefit extends to order backing, the place Tether claims 75.86% U.S. Treasury Bills and 12.09% in a single day repos throughout its reserve portfolio.
Native stablecoins like USDH are taking a unique strategic strategy, focusing on particular ecosystem integration relatively than the cross-chain ubiquity that characterizes established gamers.
Bloomberg characterized related governance contests as “bidding wars” spreading throughout DeFi platforms as establishments acknowledge substantial income potential from stablecoin reserves.
The USDH energy wrestle on @HyperliquidX has concluded, with Native Markets securing the stablecoin mandate. Analysts say competitors now hinges on branding and partnerships.#DeFi #Stablecoins https://t.co/vRvxxuLmEM
— Cryptonews.com (@cryptonews) September 17, 2025
The stablecoin panorama is displaying growing fragmentation, regardless of USDT’s dominance, with Chainalysis reporting $2.5 trillion in sector-wide transaction volumes that accommodate specialised gamers.
Binance at the moment holds 67% of all change stablecoin reserves, amounting to $44.2 billion, comprising $37.1 billion in USDT and $7.1 billion in USDC.
Smaller stablecoins have additionally proven speedy development trajectories, with euro-denominated EURC increasing 89% month-over-month from $47 million to $7.5 billion in transactions in the course of the previous 12 months.
Similarly, PayPal’s PYUSD accelerated from $783 million to $3.95 billion over the identical interval.
These aggressive dynamics emerge as regulatory frameworks evolve, with the Trump-backed GENIUS Act and the EU’s MiCA creating alternatives for compliant options to seize market share.
Industry projections from Citigroup counsel the sector may attain over $2 trillion market capitalization by 2030, which may doubtlessly create house for a number of gamers to coexist relatively than winner-take-all situations.
Looking ahead, the success of ecosystem-focused stablecoins will seemingly rely on the expansion trajectories of their host platforms. For occasion, Hyperliquid generated $106 million in revenue during August 2025 alone, whereas slashing spot trading fees by 80% to bolster liquidity forward of the stablecoin launch.
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