Native Markets has officially claimed the USDH ticker for Hyperliquid’s upcoming US dollar-pegged stablecoin, following a highly contested bidding war that drew widespread attention across the crypto community.
Native Markets Secures the Win
The victory came after a community vote that saw Native Markets emerge as the chosen issuer and manager of Hyperliquid’s stablecoin project. According to founder Max Fiege, the team will soon deploy the inaugural Hyperliquid Improvement Proposal (HIP) for USDH, launching the token as an ERC-20 asset on Ethereum.
Fiege detailed the rollout plan on X:
- Initial testing phase with mint and redeem limits of $800 per transaction.
- Gradual expansion to open the USDH/USDC spot order book.
- Transition to uncapped mints and redeems once stability is ensured.
The Bidding War and Controversy
The battle for USDH was one of the most closely watched stablecoin developments of the year. Prediction market Polymarket showed Native Markets’ odds skyrocketing to over 99% by Saturday, especially after Ethena, a synthetic stablecoin issuer, withdrew from the competition on Thursday.
However, the outcome has not been without criticism.
- Haseeb Qureshi, managing partner at Dragonfly, questioned the legitimacy of the process, saying it felt like a “backroom deal” with little room for genuine competition.
- Other participants noted that validators appeared disinterested in proposals from established stablecoin and payments firms, fueling accusations of bias.
What It Means for Stablecoins
The debate extends beyond just USDH. Mert Mumtaz, CEO of Helius, argued that the race highlighted a commoditization of stablecoins. He predicted that in the future, exchanges may abstract away individual tickers like USDH, USDC, and USDT, instead presenting users with a generic “USD” balance. Behind the scenes, exchanges would manage the swaps, simplifying the user experience while masking ticker-level competition.
With Native Markets now in control of the ticker, Hyperliquid is set to test whether a community-driven selection process can create a competitive and reliable stablecoin. The rollout of USDH will be closely monitored, not only for its market adoption but also as a litmus test for transparency and governance in the stablecoin sector.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.