Hyperliquid's Newly Launched USDH Stablecoin Sees Over $2M Volume in Early Trading

Hyperliquid's very own stablecoin USDHL, developed by Native Markets, debuted Wednesday, generating over $2 million in early volume.

As of writing, the Hyperliquid-listed $USDH/$USDC pair traded at 1.001, with a total trading volume of 2,244,932.79 $USDC.

Last week, the Hyperliquid validator community selected Native Markets to receive the $USDH ticker following a lengthy bidding war that saw proposals from Paxos, Ethena, Frax, and others.

The dollar-pegged stablecoin is issued natively on HyperEVM and is backed by cash and short-term U.S. Treasury securities. The stablecoin will help reduce Hyperliquid's dependency on external stablecoins such as the Circle-issued $USDC, which accounts for over 90% of the deposits on the platform.

Having a homegrown stablecoin will help the platform retain the liquidity and the yield generated from reserves within its own ecosystem. $USDH is designed to channel the yield generated from its reserves into the ecosystem through a 50-50 split, such that half of the revenue from $USDH’s reserve income goes into funding HYPE buybacks and the other half supports ecosystem growth initiatives.

Hyperliquid is the world's leading on-chain perpetuals decentralized exchange, controling over 35% of the global activity. It's market share, however, has receded sharply from 70% at one point in May.