TLDR:
- Market: Hyperliquid’s HYPE token up 14% to a new ATH, as USDH’s launch event looks to take down USDC’s $6B market leader status; Native Markets win gives ecosystem positive momentum.
- Narrative: Native Markets, in its Hyperliquid-native proposal, emerged victorious in a 69% validator vote in September 14, 2025, to establish USDH, defying industry giants like Paxos and Ethena. The win, inspired by ecosystem compatibility, sparks intentions of trials, as rumors of staged vote and risks of regulation blur its entry.
On September 15, 2025, Validators of Hyperliquid concluded a week-long bidding, choosing Native Markets to develop the USDH stablecoin with a clear 69% stake-weighted vote (10/19 validators) on September 14, 2025. That makes USDH the second stablecoin supported on Hyperliquid DEX, after USDC’s $6B supply, which critics see as offering little ecosystem value. Native Markets, whose team includes Hyperliquid early contributor-turned-co-founder @fiege_max, Anish Agnihotri, and former-Uniswap COO MC Lader, aims to test USDH on Hyperliquid (HIP-1) and Ethereum (ERC-20) within days, initially with $800 transaction limitations per user.
The $USDH narrative hinges on Native Markets’ homegrown status, ensuring alignment with Hyperliquid’s interests over external firms like Paxos, Agora, Frax, Sky, and Ethena, who also bid. The project will back USDH with cash and U.S. Treasuries custodied off-chain by BlackRock and on-chain by Stripe-acquired Bridge, pledging profits for HYPE buybacks and USDH supply growth. This win also signals Hyperliquid’s further success, as HYPE rose by 14% to a new ATH in the past week, echoing U.S. GENIUS Act-led stablecoin demand.
But there is controversy. Critics suspect a fixed vote, pointing to Native Markets’ 90-minute proposal response time—impossible for competitors—and lack of demonstrated history against big players. Some defenders insinuate bribery without proof, sustaining rumors of staged governance “play” to secure decentralization optics. In spite of this, there is a call to Paxos, Agora, and Ethena to introduce competitor stablecoins, leaving users to choose by adoption. Investors will want to observe USDH’s trial launch and validator transparency, cautious of regulatory headwinds and governance conflict in this high-risk DeFi play.
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