Hyperliquid to Launch USDH Stablecoin: A DeFi Power Move

Hyperliquid to Introduce Proprietary Stablecoin: USDH

Decentralized exchange Hyperliquid (HYPE) is making a significant move by preparing to launch its own U.S. dollar stablecoin, USDH. The Hyperliquid Foundation announced the plan via their Discord server.

The protocol has already reserved the ticker USDH, and validators will soon participate in an on-chain governance vote to formally allocate it. Teams interested in utilizing USDH can submit proposals; the winning proposal will be selected by a validator quorum.

“The USDH ticker is well-suited for a Hyperliquid-first, Hyperliquid-aligned, and compliant USD stablecoin,” the announcement stated.

Strategic Rationale

Stablecoins are a cornerstone of crypto markets, providing liquidity and serving as trading pairs for settlements. The stablecoin market is a $270 billion asset class, currently dominated by Tether's USDT and Circle's USDC. Recent regulatory developments, such as the GENIUS Act in the U.S., are encouraging industry players to develop their own stablecoins tailored to their ecosystems. MetaMask is also planning a stablecoin launch with M0 infrastructure, and Stripe recently created its own in-house stablecoin with Bridge.

Hyperliquid's Potential Advantage

Hyperliquid's trading activity indicates substantial potential demand for USDH. Last month, the exchange reported $398 billion in perpetual derivatives trading volume and $20 billion in spot trades, according to DefiLlama data. Currently, Circle’s USDC dominates the platform's stablecoin liquidity, representing 95% of the $5.6 billion stablecoin supply on the network.

Introducing USDH could allow Hyperliquid to reduce its dependence on Circle and capture revenue from the assets backing the new token. As platforms explore building in-house stablecoins, Codeum remains committed to providing security audits and KYC/AML services for stablecoin issuers, ensuring compliance and protecting users.

Read more: Hyperliquid’s HYPE Token: Why Arthur Hayes Thinks It Has 126x Upside Potential