USDH became the first dollar token issued through a validator selection process on Hyperliquid. The issuer is Native Markets, whose project is built on HyperEVM and integrated into the protocol stack.
The reserves of the stablecoin are fully backed by cash and short-term US Treasury bonds. Part of the assets is managed off-chain, while another part is on-chain with transparency ensured through oracles. The economic model includes directing a portion of reserve income toward buybacks of the HYPE token.
How the Selection Took Place
At the beginning of the month, Native Markets won the validator vote, beating competitors such as Paxos, Frax, and Agora. The company’s proposal outlined a phased launch, including the listing of the USDH/USDC pair on the spot market within days after the vote.
The process generated noticeable interest in the community. On Polymarket, most bets were placed on Native Markets winning. Paxos attempted to convince validators with the possibility of integrating PayPal and Venmo payment channels, but in the end, the community chose the team with a local strategy.
Hyperliquid’s Strategy
Hyperliquid is strengthening its own settlement layer and infrastructure for dollar-denominated transactions at a time when competition in the stablecoin and Layer 2 markets is rapidly growing. The appearance of USDH expands the set of dollar pairs on the platform and gives the exchange greater control over liquidity and fees.
