USDH Stablecoin Goes Live on Hyperliquid with $2.2M Early Trading Volume – Can it Replace Tether?

Hyperliquid’s native stablecoin, USDH, launched on September 23 with $2.2 million in early trading ￰1￱ launch follows Native Markets’ victory in a competitive governance vote that saw the startup defeat established players, including Paxos and Ethena Labs, for the right to issue USDH on the decentralized ￰2￱ commenced with a USDH/USDC spot pair on HyperCore, while Native Markets reported over $15 million in pre-minted tokens prepared for initial ￰3￱ stablecoin maintained its $1.00 peg during early trading sessions, fluctuating only to $1.001 as market participants tested the new asset’s liquidity and stability ￰4￱ is now live for all Hyperliquid users!

The USDH / USDC spot order book is open on HyperCore, with over $15M USDH pre-minted in the last 24 hours. — Native Markets (@nativemarkets) September 24, 2025 Native Markets Begins Controlled USDH Rollout Native Markets structured the launch as a gradual expansion, initially capping individual transactions at $800 per user while core functions undergo real-world testing. “USDH is now live for all Hyperliquid users,” the company announced on social media, highlighting completion of both HIP-1 and ERC-20 token ￰5￱ integration phases will unfold over the coming months, beginning with HyperEVM integrations, followed by the expansion of USDH’s role as a spot quote ￰6￱ developments include native minting directly on HyperCore and USDH-margined perpetual contracts through the proposed HIP-3 protocol ￰7￱ issuer structured USDH reserves using cash and short-term ￰8￱ holdings managed off-chain by BlackRock, while on-chain tokenized assets operate through Superstate and Stripe’s Bridge infrastructure.

Meanwhile, Native Markets is also committed to directing 50% of its reserve yield toward Hyperliquid’s Assistance Fund, with the remaining portions allocated for USDH ecosystem ￰9￱ revenue-sharing model emerged from the company’s competitive proposal that secured validator approval against better-known rivals during September’s governance ￰10￱ currently hosts over $5.5 billion in Circle’s USDC, representing approximately 8% of the token’s total supply and generating an estimated $220 million annually in treasury yield revenue for ￰11￱ Competition Intensifies as Platforms Pursue Revenue Independence The USDH launch contributes to a broader shift within defi, as trading platforms seek to reduce their dependence on external stablecoin issuers and capture reserve yield revenue internally.

Tether’s USDT currently dominates the market, with $173.05 billion in circulation, processing over $24.6 billion daily on TRON alone through approximately 2.4 million transactions, according to Coingecko’s ￰12￱ infrastructure advantage extends to reserve backing, where Tether claims 75.86% ￰13￱ Bills and 12.09% overnight repos across its reserve ￰14￱ stablecoins like USDH are taking a different strategic approach, targeting specific ecosystem integration rather than the cross-chain ubiquity that characterizes established ￰15￱ characterized similar governance contests as “bidding wars” spreading across DeFi platforms as institutions recognize substantial revenue potential from stablecoin ￰16￱ USDH power struggle on @HyperliquidX has concluded, with Native Markets securing the stablecoin ￰17￱ say competition now hinges on branding and partnerships. #DeFi #Stablecoins ￰0￱ — ￰18￱ (@cryptonews) September 17, 2025 The stablecoin landscape is showing increasing fragmentation, despite USDT’s dominance, with Chainalysis reporting $2.5 trillion in sector-wide transaction volumes that accommodate specialized ￰19￱ currently holds 67% of all exchange stablecoin reserves, amounting to $44.2 billion, comprising $37.1 billion in USDT and $7.1 billion in USDC.