tl;dr
Native Markets secured the USDH stablecoin ticker on Hyperliquid after a competitive governance vote, defeating Paxos and with Ethena exiting the race. The win has sparked debate over the fairness of the process, with concerns raised about the compressed timeline and existing validator ties. Nativ...
**Native Markets Secures USDH Stablecoin Ticker in High-Stakes Crypto Governance Vote**
In a dramatic turn of events, Native Markets claimed victory in a fiercely contested battle for the USDH stablecoin ticker on Sunday, following a pivotal governance vote among Hyperliquid validators. The win, hailed as one of the most watched decisions in crypto this year, came after a wave of strategic withdrawals and shifting odds left the startup as the clear frontrunner.
Ethena, a once-prominent contender, exited the race on Thursday, citing concerns from validators and community members about its proposal’s alignment with Hyperliquid’s ethos. Its departure pushed prediction markets to favor Native Markets at over 90%, while Paxos, the remaining challenger, struggled to gain traction despite revising its bid midweek.
Yet the victory wasn’t without controversy. Critics argued the compressed timeline for the request-for-proposals process, coupled with existing validator ties to Hyperliquid’s infrastructure, skewed the field in Native Markets’ favor. “It’s a win, but not without questions,” one observer noted, highlighting the debate over fairness in the governance mechanism.
Max Fiege, founder of Native Markets, outlined a cautious but ambitious rollout plan. The first step will be a Hyperliquid Improvement Proposal, followed by a controlled trial of USDH mints and redeems. Early participants will face transaction caps of around $800 to stress-test the system. Once initial checks pass, the USDH/USDC spot order book will open on Hyperliquid, with full minting and redemption features following.
The move has been called a “watershed moment” by Vincent Liu, chief investment officer at Kronos Research, who said the vote “cements Hyperliquid as a fast-growing ecosystem” while underscoring the “intensifying stablecoin competition.” Liu emphasized that stablecoins remain central to crypto’s next phase of global adoption, with governance-led moves and fresh liquidity pouring into Hyperliquid.
Native Markets’ proposal stood out for its native alignment with Hyperliquid. The firm plans to manage cash reserves and U.S. Treasuries off-chain via BlackRock, while tokenized reserves will be handled on-chain by Superstate, Stripe’s stablecoin infrastructure provider. To sweeten the deal, Native Markets pledged to split all reserve yield equally between Hyperliquid’s Assistance Fund and ecosystem growth.
Backers include heavyweights from Uniswap Labs, Paradigm, and Polychain, along with early validator endorsements from groups like CMI Trading. These factors, combined with a clear focus on Hyperliquid’s infrastructure, gave Native Markets a decisive edge.
Still, the road ahead is fraught with challenges. “Breaking through the dominance of USDC and USDT will require more than just a good proposal,” Liu warned. Adoption and liquidity are king in stablecoin wars, and Native Markets’ success will hinge on proving it can compete while maintaining stability. Transparency around reserves and unified governance, Liu added, will be critical to earning lasting trust.
As USDH prepares to launch, the crypto world watches closely. For Native Markets, the win is both a triumph and a test—one that could reshape Hyperliquid’s future and the broader stablecoin landscape.