TLDR
- Native Markets wins Hyperliquid’s USDH stablecoin ticker after beating competitors including Paxos and Ethena
- Paxos offered deep PayPal integration and $20 million incentives but failed to gain validator support
- Native Markets plans phased rollout starting with $800 transaction limits for testing
- Ethena withdrew from the race citing community concerns about non-native infrastructure
- Critics question the bidding process, suggesting validators already favored Native Markets
Native Markets has secured the USDH ticker for Hyperliquid’s native stablecoin after winning a community governance vote. The decision ended a heated bidding war that attracted major players including Paxos and Ethena.
We will be deploying both the USDH HIP-1 and corresponding ERC-20 within days.
We will then start with a testing phase for mints and redeems of up to $800/tx with an initial group, to be followed by the opening of the USDH/USDC spot order book as well as uncapped mints &…
— max.hl (@fiege_max) September 14, 2025
The voting process concluded Sunday with Native Markets claiming over 99% odds on prediction market Polymarket. Max Fiege, founder of Native Markets, confirmed the team will deploy the first Hyperliquid Improvement Proposal for USDH in the coming days.
The new stablecoin will launch as an ERC-20 token on the Ethereum network. Native Markets plans to begin with a testing phase that limits mints and redeems to $800 per transaction for an initial user group.
Following the test phase, the team will open a USDH/USDC spot order book. Full access with uncapped mints and redeems will come later in the rollout process.
Paxos remained in contention until the end despite failing to gain validator support. The established payment company revised its proposal midweek to include deeper PayPal and Venmo integration.
The Paxos offer included zero-cost on and off-ramps for users. The company also proposed a $20 million incentive plan to boost adoption of the new stablecoin.
Paxos Revenue Sharing Plan Falls Short
Paxos committed all USDH revenue to Hyperliquid’s growth until the platform reaches $1 billion in total value locked. The company agreed to cap its own revenue share at 5% once TVL exceeds $5 billion.
Despite these concessions, Paxos failed to secure the validator commitments needed to win the ticker. Native Markets had already gained backing from key validator groups including CMI Trading.
Ethena, initially seen as a top contender, withdrew from the race Thursday. The synthetic stablecoin issuer cited community concerns about its non-native infrastructure as the reason for exiting.
The withdrawal left Native Markets as the clear frontrunner heading into the final voting period. Prediction markets reflected this shift with Native Markets odds spiking above 99%.
Criticism Emerges Over Selection Process
Some crypto industry executives questioned the fairness of the bidding process. Haseeb Qureshi, managing partner at venture capital firm Dragonfly, called the RFP “a bit of a farce.”
Qureshi claimed multiple bidders reported that validators were not seriously considering anyone besides Native Markets. He suggested the outcome may have been predetermined through backroom deals.
Native Markets pitched a reserve strategy using both off-chain and on-chain assets. Cash and US Treasuries will be managed off-chain by BlackRock for security and regulatory compliance.
On-chain tokenized assets will be handled through Superstate and Stripe’s Bridge infrastructure. The team committed to split all reserve yield between Hyperliquid’s Assistance Fund and broader ecosystem growth.
The Native Markets team gained credibility through backers with experience at Uniswap Labs, Paradigm, and Polychain. These connections helped secure early validator endorsements that proved crucial to winning the ticker.
