Hyperliquid, the decentralized derivatives exchange, is moving to launch its own U.S. dollar stablecoin under the ticker USDH, the Hyperliquid Foundation said in a Discord announcement. Validators will vote on-chain to allocate the USDH ticker, and teams can submit proposals to issue and operate the token.
The initiative aims to give Hyperliquid-native liquidity options and reduce reliance on Circle’s USDC. Stablecoins are central to crypto trading and settlement — a roughly $270 billion market — and platforms increasingly prefer in-house tokens to control liquidity and economics.
Hyperliquid’s volumes suggest immediate demand: the exchange handled about $398 billion in perpetual derivatives and $20 billion in spot trades last month. On-network stablecoin liquidity is currently dominated by USDC, which makes up roughly 95% of the $5.6 billion stablecoin supply on Hyperliquid.
By introducing USDH, Hyperliquid could lower its exposure to external issuers and capture yield or fees from reserve assets that back the token. The winning issuer will be chosen by validator quorum, meaning governance participation and compliance standards will shape who mints USDH.
Risk considerations: new platform-issued dollar tokens face regulatory scrutiny and require transparent reserve management. There’s also the risk of liquidity fragmentation or weak adoption, which could limit USDH’s usefulness. Traders and projects should review issuer proposals and on-chain governance rules before moving liquidity.
If adopted, USDH could shift on-chain liquidity dynamics on Hyperliquid and redirect some reserve revenue into the platform’s ecosystem. Source: Hyperliquid Foundation (Discord). Read the original coverage for full details.