Native Markets won the race to emit and manage the Stablecoin Dollar de Hyperliquid, after having secured the USDH ticker after a particularly disputed a week's auction process. This governance competition, in which trucks like Paxos and Bitgo participated, has aroused strong reactions in the crypto ecosystem.
In short
- Native Markets obtains the rights to emission Stablecoin USDH after an intense auction on Hyperliquid.
- USDH will be backed by US treasury vouchers and liquidity, with reserves managed by BlackRock and Superstate.
- The launch begins with a test capped at $ 800/transaction before the opening of strikes, redemptions and trading spot without limit.
- The governance process is criticized for its lack of transparency, some denouncing biased selection and increasing “commodification” of stablecoins.
Native Markets wins the USDH call for tenders
The decision fell on Sunday, after weeks of speculation and auction. One of the main competitors, Ethena, had withdrawn along the way, invoking problems related to its non -native infrastructure. Following this withdrawal, polymarkets estimated the chances of victory of Native Markets at 99 %.
In a message published on X, the founder of Native Markets, Max Fiege, presented the next steps: the deployment of an improvement proposition (HIP) hyperliquid for the USDH as well as a future ERC-20 token on Ethereum.
Fiege clarified that the protocol would first start a test phase : Users will be able to hit and buy USDH, before accessing a USDH/USDC without limit. The team explains that the initial ceiling of $ 800/transaction is a safety measure before the full operations opening.
We will start with a test phase for strikes and redemptions up to $ 800/Transaction with a limited group, before deploying the USDH/USDC spot orders as well as unlimited strikes and branches.
Max Fiege
The hyperliquid Hyperevm network will emit the USDH, while the reserves will be composed of traditional assets and on-chain. The yield generated will partly used to buy the Hype token and finance programs promoting the adoption of the USDH.
According to the proposal, Stablecoin will be fully guaranteed by US liquidity and treasury vouchers, BlackRock managing traditional and superstate reserves, via Bridge de Stripe, those on-chain.
Contested governance
Apart from the usual rating events, the auctions for the Governance of the USDH marked the first large platform vote on hyperliquid. Native Markets was also among the first to submit a proposal, barely an hour after the announcement of Hyperliquid.
If the hyperliquid Foundation has not taken part in the vote, several major players and the extended community closely followed the process of allocating rights to the USDH. Some members of the industry, however, expressed concerns, pointing to a potentially biased vote and, by turn, the future of the stablecoin.
Haseeb Qureshi, partner of the Dragonfly Capital Fund, described the USDH “farce” tender process (RFP).
I heard several bidders say that no validator seriously envisaged another option than Native Markets. It was not even a debate: it was impression that a secret agreement was already concluded
Haseeb Qureshi
In addition, Mert Mumtaz, CEO of the supplier of RPC Helius nodes, estimated that this process showed how Stablecoins evolve towards the status of simple goods.
He added that, in the near future, exchange platforms will no longer display the different stablecoins tickers leaning against the dollar. Users will only see a global balance in “USD”, while the platform will decide in the background which stablecoin use.
He added that the exchange platforms will no longer display in the future the different stablecoins tickers leaning against the dollar. Instead, users will see a single “USD” balance, while the platform will manage behind the scenes which stablecoin is used.
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