On September 14, the Native Markets team confirmed that it will be responsible for issuing and managing the USDH dollar stablecoin for the Hyperliquid crypto exchange. The decision was made through a community vote.
First Steps of the Project
Native Markets founder Max Fiege stated that in the coming days the first Hyperliquid Improvement Proposal (HIP) for USDH and the ERC-20 token on Ethereum will be launched. At the start, the project will test issuing and redeeming the stablecoin for amounts up to $800 per transaction for a limited group of users. After that, the plan is to open a USDH/USDC spot order book and move to unlimited operations.
Market Situation
Native Markets’ chances of winning rose sharply on September 13, surpassing 99% on Polymarket after competitor Ethena dropped out of the race. This process drew increased attention from the crypto community and industry representatives, accompanied by accusations of non-transparent selection and debates about the future of the entire stablecoin sector.
Industry Reactions
Several experts voiced dissatisfaction with the results. Dragonfly managing partner Haseeb Qureshi called the selection process a “farce.” According to him, many market participants claimed that validators never seriously considered any proposal other than Native Markets’ submission, making the outcome appear predetermined.
Helius CEO Mert Mumtaz noted that the competition highlighted how stablecoins are turning into a commodity product. He predicted that in the future exchanges will display only a generic USD ticker for users, while conversions between different stablecoins will occur on the backend without trader involvement.
VanEck HYPE-ETF
On September 11 it was also revealed that investment company VanEck plans to launch a US-based fund backed by HYPE tokens with staking capabilities. In parallel, a European exchange-traded product (ETP) is being prepared.
VanEck staff confirmed these initiatives but did not specify the timeline for filing applications. If approved, HYPE would become the youngest digital asset that the company has included in its listings. Previously, VanEck launched ETFs for Bitcoin, Ethereum, and several other tokens.
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