Native Markets officially acquired the USDH stablecoin for Hyperliquid after a vote by the community. The move, made on September 14, 2025, represents an enormous DeFi milestone. Native Markets beat entrenched operators like Paxos and Frax by more than 70% of the votes.
Community Vote and Selection Process
Community voting opened on September 5, seeking proposals for the first stablecoin of Hyperliquid. Native Markets gained traction following the pullout of Ethena, which was among the leaders. The pullout resulted in a flood of prediction market odds in favor of Native Markets, with a record-breaking almost 100% on Polymarket.
Though there was a win for the win, the choice process has been criticized. Haseeb Qureshi of Dragonfly described bidding as “a farce” and indicated that the process had Native Markets in mind from the beginning. The voting possibly was not as transparent as conveyed by the competitors with probable behind-the-scenes maneuvers.
Rollout Plans for USDH
Native Markets co-founder Max Fieie confirmed that the introduction of USDH will start with capped minting and testing of redemption. Consumers can conduct transactions up to $800 at first. Next, a USDH/USDC order book will open the door for uncapped transactions.
The strategic release is to provide stability and security in bringing USDH to the market. Fieie confirmed that both HIP-1 and ERC-20 versions of USDH are coming out soon.
Industry Implications and Debates
The USDH launch represents a crucial milestone in Hyperliquid’s move away from traditional stablecoins such as USDC and USDT. The move, however, has raised concerns regarding governance of decentralized finance. According to some industry experts, the result is an indicator of larger trends where the stablecoins are being commoditized.
The allocation of USDH ticker to Native Markets is a victory for Hyperliquid and the wider DeFi space. With the platform further advancing in preparation for the launch of the USDH, continued debates about governance and openness in the selection process will put a vision on how stablecoins are to evolve.
