Market native US Dollar token symbol update after Hyperliquid governance vote approval
In a closely watched decision in the crypto world this year, Native Markets has edged out established bidders to secure the USDH stablecoin ticker following a governance vote among Hyperliquid validators.
The victory marks a significant milestone for Native Markets, a newcomer in the decentralised finance (DeFi) market, backed by operators and investors with track records at Uniswap Labs, Paradigm, and Polychain.
Max Fiege, founder of Native Markets, outlined a phased rollout in a statement on Sunday. The first step will be the introduction of a Hyperliquid Improvement Proposal (HIP). Mints and redeems of USDH will begin in a controlled trial after the HIP is introduced. Full minting and redemption functionality for all users will be available after the USDH/USDC spot order book opens.
The stablecoin USDH will primarily be traded on HyperLiquid's own decentralized perpetual futures exchange, as it is the native stablecoin of HyperLiquid and supported by a governance vote. It will also be integrated with related ecosystems and potentially other DeFi markets, but no specific external centralized exchanges were mentioned after the governance vote.
Native Markets' proposal emphasized a native alignment with Hyperliquid, using BlackRock for cash reserves and U.S. Treasuries management off-chain. Tokenized reserves will be handled on-chain by Superstate through Bridge, Stripe's stablecoin infrastructure provider.
The voting process drew criticism due to the compressed request-for-proposals timeline and validator ties to existing Hyperliquid infrastructure. However, observers argued that these factors potentially tilted the playing field in favor of Native Markets.
Notably, Ethena withdrew from the race, citing feedback from validators and community members questioning whether its proposal met the spirit of the competition. Prediction odds on Myriad for Native Markets rose above 90% following Ethena's withdrawal, effectively clearing the path.
The USDH/USDC spot order book will open on Hyperliquid after initial checks are complete. Early participants will be capped at about $800 per transaction to stress-test the system.
Vincent Liu, chief investment officer at Kronos Research, noted that Native Markets' biggest test will be breaking through the dominance of USDC and USDT. Transparency around reserves and strong, unified governance will be vital for Native Markets to win lasting trust and compete while maintaining stability.
Paxos trailed behind despite revising its proposal midweek. The success of Native Markets underscores the potential for new players to make a mark in the competitive and fast-evolving DeFi landscape.
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