September 15th• 3 min read
Native Markets Wins Hyperliquid's Billion-Dollar Stablecoin Vote
Native Markets secured the USDH stablecoin ticker in Hyperliquid's first major governance vote, defeating established competitors like Paxos and Ethena with 70% validator support.
Key takeaways
🏛️ Historic Governance Win: Native Markets secured 70% of validator votes to issue USDH, marking Hyperliquid's first major governance decision beyond routine listings.
💰 Billion-Dollar Stakes: The victory gives Native Markets control over what could become a multi-billion dollar stablecoin, potentially redirecting hundreds of millions in annual Treasury yield.
🚀 Phased Launch Plan: USDH rollout begins within days with capped testing at $800 per transaction, followed by USDH/USDC spot trading before full availability.
🔗 Strategic Partnerships: Reserves will be managed by BlackRock off-chain and Superstate on-chain via Stripe's Bridge infrastructure, with yield split between HYPE buybacks and ecosystem growth.
Deep dive
Native Markets' victory in Hyperliquid's USDH governance vote represents a watershed moment for the decentralized exchange ecosystem.
Despite competing against established players like Paxos (which offered 95% revenue sharing) and other heavyweights, the newly-formed team won with approximately 70% of validator support.
The decision carries enormous financial implications, as Hyperliquid currently holds $5.5 billion in USDC deposits—about 7.5% of the stablecoin's total supply.
Native Markets' proposal to split reserve yield between HYPE token buybacks and ecosystem development, combined with backing from experienced operators at Uniswap Labs, Paradigm, and Polychain, ultimately convinced validators.
The victory demonstrates how ecosystem alignment and native knowledge can triumph over pure financial incentives in DeFi governance, while positioning Hyperliquid to capture stablecoin yields that previously flowed to external issuers.
Polaris insights AI-generated
Disclaimer: This article may contain content generated or assisted by AI, based on information from public sources. While we aim for accuracy, no content should be taken as financial or trading advice. Always do your own research and consult a professional before making investment decisions. Markets are volatile and involve risk.
