TLDR
- Native Markets’ bid for USDH stablecoin received over 70% support from HYPE stakers.
- Hyperliquid’s USDH will begin with capped transactions before wider adoption.
- BlackRock and Superstate will manage USDH’s off-chain and on-chain reserves.
- Kraken plans to list USDH and HYPE tokens following the stablecoin’s launch.
Hyperliquid’s highly anticipated USDH stablecoin is expected to launch soon, following Native Markets’ successful bid for the project. With over 70% approval from HYPE stakers, the governance vote has cleared the way for the rollout of the new stablecoin. Native Markets is now in charge of managing the stablecoin’s deployment, which is expected to begin in the next few days.
Initial Rollout with Capped Transactions
The launch of USDH will begin with a controlled trial phase. This phase will include capped transactions of up to $800 per mint or redemption. During this period, select traders will test the stablecoin’s infrastructure. They will help evaluate the platform’s ability to handle high-volume transactions and stress-test its API.
After this testing phase, the system will undergo further evaluation. If the initial rollout proves successful, the plan is to lift transaction caps. At this point, mints and redemptions would be uncapped, allowing for larger transactions. A USDH/USDC spot order book will also be introduced to support the broader market.
Native Markets’ Proposal and Reserve Structure
Native Markets’ proposal to manage USDH’s rollout has been well-received. The proposal’s approach to reserve management played a key role in its success. BlackRock will handle the off-chain reserves, which will include U.S. Treasuries and cash. On-chain reserves will be managed by Superstate, which is supported by a stablecoin system from Bridge and Stripe.
This structure ensures that USDH remains well-backed by both off-chain and on-chain assets. Native Markets has also pledged to share reserve earnings equally between ecosystem development and Hyperliquid’s Assistance Fund. This arrangement is aimed at ensuring the long-term stability and growth of the USDH stablecoin.
Team and Strategic Support Behind the Project
The proposal has received support from several prominent figures and organizations. Notably, experts with backgrounds at Uniswap Labs, Paradigm, and Polychain have played an essential role in developing the strategy. Their experience adds credibility to the project and strengthens confidence in its success.
Furthermore, industry leaders have expressed optimism about the project’s future. VanEck CEO Jan van Eck has shared positive views about Hyperliquid’s potential as it prepares for the launch of USDH. Kraken has also confirmed plans to list both USDH and the native HYPE token on its exchange.
Competition in the Stablecoin Market
USDH is expected to compete with existing stablecoins like USDC, which currently holds a significant market share on Hyperliquid. However, Hyperliquid has emphasized that it will continue to support USDC and other dollar-pegged assets, provided they meet certain criteria. These include maintaining sufficient liquidity depth, keeping a strong peg, and holding a $10 million HYPE stake.
The competition between stablecoins is intensifying, and Hyperliquid’s entry with USDH is likely to contribute to reshaping the market. The launch represents a strategic move as Hyperliquid seeks to establish a stronger presence in the growing stablecoin ecosystem.
Hyperliquid’s USDH stablecoin is now on track for a launch, with its management by Native Markets expected to create new opportunities in the stablecoin space. With strong backing, careful planning, and high-level support, the USDH launch could play a significant role in shaping the future of stablecoins in the market.
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