Table of contents

• What is USDH
• What is Hyperliquid Network
• mission
• Why USDH stands out
• Why Hyperliquid launches stablecoin
• How many USDH tokens are there
• What USDH does
• USDH and USDC
• The technology behind USDH
• Team and Origin
• Important news and events
• Is USDH a ??good investment?
• FAQ
• in conclusion

USDH is Hyperliquid's native stablecoin, designed to enhance the platform's ecosystem by acquiring reserve earnings and reducing reliance on external stablecoins such as USDC. USDH is issued by Native Markets and is issued by validators after a competitive vote ended on September 15, 2025. USDH is staked in fiat currency and aims to internalize economic value for Hyperliquid users and validators. Given that Hyperliquid accounts for more than 70% of the decentralized perpetual contract market, USDH is expected to become a key asset for DeFi, supporting transactions, liquidity and governance. This guide explores the mechanisms of USDH, its role in Hyperliquid and its market impact.

summary

• Token name : USDH
• Stock code : USDH
• Contract address : USDH1SM1ojwWUga67PGrgFWUHibbjqMvuMaDkRJTgkX
• Total supply : US$2.38 million
• Current market value : US$2.37 million
• Type : Stablecoin (Fiat currency collateral)
• Chain : Hyperliquid (HyperEVM network)
• Issuer : Native Markets
• Support : Cash and Treasury equivalents (off-chain via BlackRock, on-chain via Superstate)
• Infrastructure : Managed through Stripe's Bridge platform
• Revenue Sharing : 50% for Hyperliquid Aid Fund (HYPE Repurchase), 50% for Ecosystem Growth
• Release status : phased launch, from testing, spot trading to full listing

What is USDH

USDH is a native USD pegged stablecoin for Hyperliquid, a leading decentralized perpetual futures exchange. The launch of USDH is designed to address Hyperliquid's heavy reliance on bridging USDC, which currently accounts for about 95% of the platform's $5.6 billion stablecoin deposits. By launching USDH, Hyperliquid aims to maintain reserve earnings within its ecosystem rather than benefiting external issuers such as Circle. The stablecoin is issued by Native Markets, a team co-founded by Hyperliquid ecosystem participants, wins after beating validators of established competitors.

USDH is fully backed by cash and Treasury equivalents, with its reserves managed off-chain by BlackRock and on-chain by Superstate to ensure transparency and compliance, according to CoinGecko.

What is Hyperliquid Network

Hyperliquid is a Layer-1 blockchain focused on decentralized perpetual futures trading, with monthly trading volumes of nearly US$400 billion and revenue of more than US$100 million. It combines centralized exchange-like performance with DeFi's autonomous hosting capabilities. USDH is natively integrated into the network through HyperEVM as a core asset for margin, settlement and liquidity.

mission

USDH’s mission is to create a “hyperliquid-first, hyperliquid consistent and compliant” stablecoin that captures reserve earnings to boost ecosystem growth, supports seamless trading, and enhances financial sovereignty by reducing external dependencies.

Why USDH stands out

What is unique about USDH is its revenue model and native integration that is consistent with the ecosystem. Unlike traditional stablecoins where earnings flow to issuers, USDH uses 50% of the proceeds to HYPE token repurchases and 50% to develop funds. USDH selects through on-chain governance, emphasizing community priority over pure financial bidding, setting a precedent for the DeFi protocol.

Why Hyperliquid launches stablecoin

In the field of decentralized finance (DeFi), Hyperliquid has become a pivotal player. As a decentralized exchange (DEX) built on its own Layer 1 blockchain, it has the performance advantages of a centralized exchange and the advantages of autonomous custody of a decentralized system. The platform accounts for about 70% of the decentralized perpetual futures market, with monthly transaction volume of derivatives approaching US$400 billion and monthly revenue exceeding US$100 million.

However, this success is based on a high degree of dependence. The liquidity of the platform is mainly composed of external stablecoins, with the estimated total stablecoin deposits reaching US$5.6 billion, of which 95% are Circle's USD currency (USDC). This dependence poses three strategic challenges to the agreement.

First of all, the value leakage problem. The huge USDC pool on Hyperliquid is invested in earnings assets such as U.S. Treasury bonds by its issuer. All the income generated by these reserves goes to Circle, and the Hyperliquid ecosystem that creates these capital needs has no economic benefit.

The second is the issue of sovereignty and risk . Hyperliquid is built on a centralized, licensed asset like USDC, which can be frozen at the issuance level, which puts Hyperliquid at potential scrutiny risks. This is inconsistent with its goal of building a license-free, decentralized financial system.

Third, bridging stablecoins will introduce additional bridging security risks . To mitigate this risk, after the Hyperliquid team announced the launch of USDH, USDC also issued native USDC on Hyperliquid and enabled CCTP (cross-chain transport protocol, allowing USDC to move between different blockchain networks without bridging or liquidity pooling).

The decision to launch a native stablecoin represents a shift in Hyperliquid's strategic focus. By retaining the USDH code, Hyperliquid is setting out to create its own native assets, aiming to internalize the value created by its ecosystem. This move aims to transform the platform from a capital gathering place to an economy with native currencies, and the profits from the ecosystem's money supply will support the platform's own growth.

How many USDH tokens are there

• Total supply: Unlimited (casting on demand)
• Circulation supply: determined after release (released in phases, starting from the upper limit test)
• Market value: N/A (before official release)
• FDV: N/A (stablecoin pegged to 1 USD)
• Price: Target price 1 USD (soft pegged to USD)

USDH supply will grow based on user casting and adoption, and initial caps are set during testing to ensure stability.

What USDH does

USDH is the main stable asset of Hyperliquid, and its main uses include:

• Transactions and margin : as collateral for the permanent futures and spot markets on Hyperliquid.
• Liquidity Supply : Achieve deeper fund pools and reduce slippage in DeFi applications.
• Income Capture : Generate income from reserves and fund HYPE repurchase and ecosystem incentives by splitting funds.
• Fiat Ramps : Supports casting/redemption through Stripe's Bridge for seamless up/downhills.

These characteristics make USDH crucial for traders seeking low-risk, high-utility stablecoins in Hyperliquid.

USDH and USDC

What's unique about USDH

USDH’s ecosystem revenue sharing and native design make it more competitive than USDC and is expected to bring annual revenue of US$150 million to US$220 million for Hyperliquid. Its validators choose the issuance mechanism to prioritize consistency, although it faces migration challenges from mature stablecoins.

The technology behind USDH

USDH adopts a hybrid model that combines traditional financial infrastructure with blockchain technology. Reserves are tokenized through Stripe's Bridge, enabling compliant coin/redemption. Superstate ensures on-chain transparency, while BlackRock’s off-chain hosting enhances institutional security.

Core functions

• Legal mortgage support : fully retain cash equivalents and can be redeemed 1:1.
• Phase launch : First, cap testing (approximately $800/trade), followed by USDH/USDC spot pairs and unlimited access.
• Compliance Tool : Comply with regulatory security requirements of the GENIUS Act.
• Ecosystem integration : Native to HyperEVM, supports perps, spot and future DeFi expansion.

According to CoinGecko, this setup allows USDH to compete with existing players while minimizing the risk of centralization.

Team and Origin

USDH’s issuer Native Markets was co-founded by Hyperliquid early investor Max Fiege, blockchain researcher Anish Agnihotri and former Uniswap Labs COO MC Lader. The project originated from the solicitation of proposals initiated by Hyperliquid on September 5, 2025, aiming to internalize the value of stablecoins. Despite the low earnings share, Native Markets won the final victory, highlighting the trust of the ecosystem.

Important news and events

• September 5, 2025: Hyperliquid announces USDH proposal process.
• September 11-15, 2025: Validators vote for Native Markets instead of Paxos, Frax and others.
• After the vote: Phase releases will begin “within a few days”, starting with testing.

The vote triggered a rise in HYPE tokens, which reached a price of up to $57.30, driven by bid enthusiasm.

Is USDH a ??good investment?

As a stablecoin pegged to USD 1, USDH’s original design intention was not speculative returns, but stability and practicality. Its potential lies in ecosystem adoption: Hyperliquid has $5.6 billion in USDC deposits, and successful migrations can bring great benefits to HYPE holders through repurchases.

• Market background : The increase in DeFi transaction volume is conducive to native stablecoins; Hyperliquid's permanent market share supports growth.
• Technology Advances: Bridge integration ensures compliance and scalability.
• Adoption: Early liquidity incentives may drive adoption, but competition from USDC remains.
• Risk: Regulatory changes, execution delays or low mobility may affect the stability of the linkage.
• Note: Focus on holding income exposure rather than price appreciation.

Thorough study; results depend on market dynamics and the development of Hyperliquid.

FAQ

1.What is USDH?

Hyperliquid's native stablecoin is issued by Native Markets and backed by U.S. Treasury bonds.

2. How is USDH different from USDC?

USDH shares benefits with the ecosystem, while USDC benefits only its issuers.

3.Is USDH safe?

It has fiat currency as collateral and is audited and reviewed in compliance, but as a new asset, it needs to monitor its anchor stability.

4. How to obtain USDH?

By minting after Hyperliquid is online and converting to fiat currency via Bridge.

5.What happens to USDC on Hyperliquid?

It is still supported, but USDH aims to replace it step by step.

6. Why did Native Markets win?

Validators prioritize ecosystem coordination rather than higher yield bids.

in conclusion

USDH represents Hyperliquid’s strategic move towards economic independence, aiming to provide a compliant and profitable stablecoin for DeFi transactions. Under Native Markets, USDH may redefine the value stream of the perpetual contract market. While the ecosystem has bright prospects, we also need to pay close attention to the online risks and application of USDH.

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