Native Markets Secures USDH Ticker in Hyperliquid Auction

• Validators awarded the USDH ticker to Native Markets after a weeklong competitive vote.
• USDH will launch with capped $800 transactions before opening a USDC trading pair.
• Dual reserves managed by BlackRock and Superstate aim to secure USDH’s stability and growth.

Native Markets has secured the USDH stablecoin ticker on after a weeklong auction. Validators selected the team following a competitive governance vote that drew proposals from Paxos, BitGo, Ethena, and other leading issuers. The outcome was Hyperliquid’s first major auction for stablecoin issuance, shifting control from a single team to a market-driven selection.

Market-Governed Stablecoin Issuance

The decision shows a trend in decentralized finance where stablecoin creation is moving toward competitive, validator-led governance. Hyperliquid’s validator community reviewed proposals before awarding the USDH ticker to Native Markets, a company co-founded by Max Fiege, Anish Agnihotri, and MC Lader. 

The process showed how decentralized exchanges can delegate core monetary functions to outside entities. Fiege confirmed that USDH HIP-1 will deploy within days alongside an ERC-20 contract. 

A testing phase will begin with capped transactions of $800 for minting and redemption. After that stage, the USDH/USDC spot market will open, followed by uncapped issuance and redemptions. This phased rollout is put as a safety measure to ensure smooth system functionality.

Competitive Bidding and Validator Oversight

Throughout the auction, prediction markets heavily favored Native Markets to win, especially after Ethena withdrew from the race on September 12. Polymarket odds placed the company’s chances at above 99% before the final decision. 

Despite competition from established issuers, validators backed Native Markets’ proposal, while the Hyperliquid Foundation abstained from voting. The selection process drew attention across the crypto industry. 

Haseeb Qureshi of Dragonfly suggested the auction felt predetermined, while other executives pointed to the commoditization of stablecoins. Mert Mumtaz, CEO of Helius, said exchanges may eventually present users with a generic “USD” label while managing multiple stablecoins behind the scenes.

Design, Compliance, and Reserve Structure

Native Markets’ proposal outlined a dual reserve system, with off-chain reserves managed by BlackRock and on-chain assets handled by Superstate through Bridge, a Stripe-owned entity. The stablecoin will be fully backed by cash and U.S. Treasury equivalents. 

The plan also includes splitting reserve yield between HYPE buybacks and programs designed to expand USDH distribution across the Hyperliquid market. The design prioritizes regulatory readiness under the GENIUS Act, the stablecoin legislation passed in the United States in July. 

While the charter is not yet active, the act requires exchanges to support GENIUS-compliant stablecoins starting in 2027. Native Markets partnered with Bridge for issuance because of its money transmitter licenses in the U.S., European registrations, and its ability to align quickly with GENIUS standards.

Related: Will the GENIUS Act Secure U.S. Stablecoin Global Dominance?

Final Steps Toward Deployment

With the USDH ticker awarded, Native Markets now moves to implementation. According to Fiege, the staged rollout ensures risk control during initial adoption. The project has also undergone audits by Zellic for its smart contract CoreRouter, which enables seamless transfers between HyperEVM and HyperCore.

Native Markets said its proposal was one built on experience within Hyperliquid’s market, trading knowledge, and institutional backgrounds. Lader, formerly President and COO of Uniswap Labs, and Agnihotri, joined Fiege in shaping the stablecoin plan. Their strategy emphasized liquidity incentives, reserve yield sharing, and technical integration as key advantages for USDH.

The outcome places USDH in direct competition with USDC, which currently holds nearly $6 billion in reserves on Hyperliquid. Despite this competition, USDC and other stablecoins will remain supported as long as they meet liquidity and governance requirements, including a 200,000 HYPE stake.

Native Markets’ win of the USDH ticker on Hyperliquid indicates the shift toward validator-led governance in stablecoin issuance. The staged rollout, compliance focus, and dual-reserve structure mark a new phase for decentralized exchanges experimenting with market-driven monetary systems. The decision enables USDH to challenge established stablecoins while supporting Hyperliquid’s governance model in a fast-growing ecosystem.

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