Hyperliquid network is poised to launch its much-anticipated USDH stablecoin. Following a vote from HYPE coin stakers, Native Markets has been chosen to manage the governance and launch of the new altcoin. The launch of this altcoin is scheduled to take place in the coming days, albeit with limited trading volume initially.
Native Markets Leads the Charge for USDH Launch
The proposal from Native Markets received approval from network validators. Max Fiege, the company’s co-founder, announced on his X account that the USDH HIP-1 and ERC-20 contracts will be activated, which will then usher in the launch phase. At the initial stage, minting and redemption transactions will be capped at $800.
Selected investors and high-volume users will be invited to test the system. Following this controlled phase, the USDH/USDC trading pair will be enabled, and transaction limits will be lifted. Data from Polymarket had indicated a likelihood of over 90% for Native Markets’ proposal to succeed.
How Will USDH Coin’s Reserve Management Operate?
The plan set forth by Native Markets garnered support thanks to its clear structure regarding reserve management. A portion of the reserves will be managed by BlackRock using cash and US Treasury bonds. Tokenized reserves within the Blockchain will be managed by Superstate, which is supported by Bridge and Stripe.
It has been declared that half of the reserve income will be allocated to ecosystem development, while the other half will be directed to the Hyperliquid Assistance Fund. This model aims to ensure the long-term stability of the network. Uniswap Labs, Paradigm, and experts with a history at Polychain are known contributors to this project.
The Kraken exchange also plans to list both USDH and HYPE coins. Hyperliquid management has announced that other stablecoins, like USDC, will continue to be supported if they meet conditions such as liquidity depth, a strong peg, and at least 10 million HYPE stakes.
