USDH Stablecoin Goes Live on Hyperliquid with $2.2M Early Trading Volume – Can it Replace Tether?

Hyperliquid’s native stablecoin, USDH, launched on September 23 with $2.2 million in early trading volume.

The launch follows Native Markets’ victory in a competitive governance vote that saw the startup defeat established players, including Paxos and Ethena Labs, for the right to issue USDH on the decentralized exchange.

Trading commenced with a USDH/USDC spot pair on HyperCore, while Native Markets reported over $15 million in pre-minted tokens prepared for initial distribution.

The stablecoin maintained its $1.00 peg during early trading sessions, fluctuating only to $1.001 as market participants tested the new asset’s liquidity and stability mechanisms.

USDH is now live for all Hyperliquid users! The USDH / USDC spot order book is open on HyperCore, with over $15M USDH pre-minted in the last 24 hours.— Native Markets (@nativemarkets) Native Markets Begins Controlled USDH Rollout

Native Markets structured the launch as a gradual expansion, initially capping individual transactions at $800 per user while core functions undergo real-world testing.

“USDH is now live for all Hyperliquid users,” the company announced on social media, highlighting completion of both and ERC-20 token deployments.

Several integration phases will unfold over the coming months, beginning with HyperEVM integrations, followed by the expansion of USDH’s role as a spot quote asset.

Future developments include native minting directly on HyperCore and USDH-margined perpetual contracts through the proposed HIP-3 protocol upgrade.

The issuer structured USDH reserves using cash and short-term U.S. Treasury holdings managed off-chain by BlackRock, while on-chain tokenized assets operate through Superstate and Stripe’s Bridge infrastructure.

Meanwhile, Native Markets is also committed to directing 50% of its reserve yield toward Hyperliquid’s Assistance Fund, with the remaining portions allocated for USDH ecosystem development.

This revenue-sharing model emerged from the company’s competitive proposal that secured validator approval against better-known rivals during September’s governance process.

Hyperliquid currently hosts over $5.5 billion in Circle’s USDC, representing approximately 8% of the token’s total supply and generating an estimated $220 million annually in treasury yield revenue for Circle.Stablecoin Competition Intensifies as Platforms Pursue Revenue Independence

The USDH launch contributes to a broader shift within defi, as trading platforms seek to reduce their dependence on external stablecoin issuers and capture reserve yield revenue internally.

Tether’s USDT currently dominates the market, with $173.05 billion in circulation, processing over $24.6 billion daily on TRON alone through approximately 2.4 million transactions, according to .

This infrastructure advantage extends to reserve backing, where Tether claims 75.86% U.S. Treasury Bills and 12.09% overnight repos across its reserve portfolio.

Native stablecoins like USDH are taking a different strategic approach, targeting specific ecosystem integration rather than the cross-chain ubiquity that characterizes established players.

Bloomberg similar governance contests as “bidding wars” spreading across DeFi platforms as institutions recognize substantial revenue potential from stablecoin reserves.

🚨 The USDH power struggle on has concluded, with Native Markets securing the stablecoin mandate. Analysts say competition now hinges on branding and partnerships. — Cryptonews.com (@cryptonews)

The stablecoin landscape is showing increasing fragmentation, despite USDT’s dominance, with Chainalysis reporting $2.5 trillion in sector-wide transaction volumes that accommodate specialized players.

Binance currently holds 67% of all exchange stablecoin reserves, amounting to $44.2 billion, comprising $37.1 billion in USDT and $7.1 billion in USDC.Source:

Smaller stablecoins have also shown rapid growth trajectories, with euro-denominated EURC expanding 89% month-over-month from $47 million to $7.5 billion in transactions during the past year.

Similarly, PayPal’s PYUSD accelerated from $783 million to $3.95 billion over the same period.

These competitive dynamics emerge as regulatory frameworks evolve, with the Trump-backed GENIUS Act and the EU’s MiCA creating opportunities for compliant alternatives to capture market share.

Industry projections from Citigroup suggest the sector could reach over $2 trillion market capitalization by 2030, which could potentially create space for multiple players to coexist rather than winner-take-all scenarios.

Looking forward, the success of ecosystem-focused stablecoins will likely depend on the growth trajectories of their host platforms. For instance, Hyperliquid generated $106 million in revenue during August 2025 alone, while slashing spot trading fees by 80% to bolster liquidity ahead of the stablecoin launch.