Hey Edge readers,

There’s been a lot of buzz around Hyperliquid lately and at the center of it is a new stablecoin called USDH. Multiple players fought hard for the chance to issue it, and after weeks of debate, a winner has finally emerged. Stay tuned to learn more.

Stay sharp. 🫡

-The Exponential team

Disclaimer: This content should not be taken as financial advice. Always do your own research before making any investment decisions.

What is USDH?

USDH is Hyperliquid’s native stablecoin, a U.S. dollar–pegged token meant to be the “cash layer” of the ecosystem. Think of it like USDC or USDT, but designed specifically for Hyperliquid’s rapidly growing trading environment.

But why was there a fight to issue it? Hyperliquid’s growth has drawn serious attention from traders and builders. Controlling USDH is valuable because it brings legitimacy, integrations, and fee opportunities, much like how USDC became the backbone of many other blockchains.

The battle for control

Hyperliquid opened a formal process for teams to pitch why they should issue USDH. The prize? Ecosystem legitimacy, potential revenue from reserves, and the chance to shape Hyperliquid’s financial backbone.

Competitors included:

• Paxos, one of the most established stablecoin issuers

• Frax, known for innovative algorithmic and reserve models

• Ethena, fresh off its synthetic stablecoin success

• Stripe (Bridge), leveraging fintech rails but criticized for conflicts of interest

• Native Markets, a newer entrant built specifically for Hyperliquid alignment

• MoonPay & Agora, teaming up with a distribution-driven pitch

Here is a breakdown of all the proposals:

So… who won and how?

The winner was Native Markets through a validator vote, reportedly taking around 70% of the support. The team now plans a phased rollout, starting with capped minting and redemption limits, followed by the launch of a USDH/USDC spot book. Winning gives them the right to issue under the USDH ticker and places them at the center of Hyperliquid’s economy.

Who is Native Markets & why USDH fits

Native Markets is a purpose-built team co-founded by Max Fiege, Anish Agnihotri, and MC Lader (ex-Uniswap Labs president/COO). Their mandate: deliver a stablecoin that is transparent, compliant, and designed specifically for Hyperliquid.

Here’s how USDH aligns with their strategy:

• Ecosystem alignment: Deep ties to Hyperliquid help ensure USDH evolves with the platform’s needs.

• Reserve structure: Backed by cash and U.S. Treasuries, managed across both off-chain custodians and on-chain venues for transparency.

• Revenue sharing: Half of yield flows to HYPE token buybacks and assistance funds; the rest fuels liquidity and adoption.

• Staged rollout: Initial caps on mint/redeem and a USDH/USDC order book to test stability before scaling.

So, what do you think, will Native Markets deliver on their promises for USDH?

TL;DR

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🔗 Check out the full article.

In the news 🗞️

• London Stock Exchange Launches Blockchain Platform for Private Funds: The London Stock Exchange Group has launched Digital Markets Infrastructure (DMI), a Microsoft Azure-powered blockchain for issuing, tokenizing, and settling assets. Private funds are the first to go live, with MembersCap and Archax handling the debut transaction. LSEG says the platform aims to boost interoperability, liquidity, and investor access.

• Tether Unveils USAT 'American' Stablecoin: Tether has launched USAT, a U.S.-regulated, dollar-pegged stablecoin announced at a New York event, with Bo Hines set to serve as CEO. Backed by Anchorage Digital under the new GENIUS Act, USAT aims to expand Tether’s dominance in the $287B stablecoin market, where USDT already holds a 58% share with a $169B market cap.

• Polkadot DAO Executes Plan to Make DOT Scarcer: Polkadot DAO has voted 81% in favor of capping DOT’s total supply at 2.1B, ending annual issuance of 120M tokens. The move introduces scarcity for the $6.3B blockchain’s native asset, which has dropped 93% from its 2021 peak. Despite founder Gavin Wood’s revamp efforts, Polkadot lags rivals, with just $423M in DeFi deposits compared to Ethereum’s $132B.

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