Native Markets Wins Hyperliquid's USDH Stablecoin Contract

Native Markets has secured the USDH ticker on Hyperliquid following the decentralized exchange's unprecedented validator vote, positioning the company to launch what could become a significant stablecoin within the rapidly growing ecosystem.

The victory concludes a competitive process that saw major stablecoin issuers, including Ethena Labs, Paxos, Frax Finance, Sky Ecosystem and others, submit proposals for the lucrative contract. Native Markets had emerged as the frontrunner in prediction markets leading up to the September 14 decision.

Native Markets plans to deploy USDH HIP-1 alongside its ERC-20 contract in the coming days, founder max.hl announced on X. The launch will begin with a capped testing phase limiting minting and redemption to $800 per transaction before introducing the USDH/USDC spot order book and scaling to full operations.

The company's winning proposal centered on an issuer-agnostic approach via Bridge, differentiating it from competitors that offered traditional fiat-backed or collateralized debt position models. Native Markets had positioned its solution as providing flexibility while maintaining compliance standards.

The USDH contract represents access to an estimated $220 million in annual revenue streams, with analysts projecting the stablecoin could capture significant market share within Hyperliquid's ecosystem. The platform currently relies heavily on Coinbase's USDC and views the native stablecoin as essential for reducing external dependencies.

Hyperliquid's validator-driven selection process marked an unprecedented democratization of stablecoin governance, allowing the platform's stakeholders to directly choose their preferred issuer rather than relying on centralized decision-making.

The competition attracted significant attention from both traditional financial institutions and DeFi protocols, with proposals ranging from Ethena's 95% revenue sharing commitment to Paxos's emphasis on regulatory compliance and enterprise infrastructure. Each contender offered various combinations of liquidity commitments, revenue-sharing arrangements, and ecosystem incentives.

Native Markets' victory represents a notable outcome for a less established player competing against industry giants. The company will now need to execute on its deployment timeline while demonstrating the technical capabilities and compliance standards that convinced Hyperliquid validators.