Native Markets has successfully secured the USDH ticker for its new stablecoin after a weeklong voting process on the Hyperliquid platform. This decision reflects the trend towards decentralized governance in stablecoin issuance.
Market-Governed Stablecoin Issuance
In the voting process, validators selected Native Markets, which presented its proposal competing against companies like Paxos and BitGo. The USDH stablecoin will be launched with capped transactions of $800 to mitigate risks during its initial phase.
Competitive Bidding and Validator Oversight
Throughout the auction, prediction markets indicated a high likelihood of Native Markets winning, especially after Ethena withdrew. Validators supported the company’s proposal, while the Hyperliquid Foundation abstained from voting.
Design and Reserve Structure
Native Markets' proposal includes a dual reserve system. Reserves will be managed by BlackRock and Superstate to ensure USDH’s stability. The partnership with Bridge guarantees compliance with the newly introduced regulations under the GENIUS Act.
The awarding of the USDH ticker allows Native Markets to compete with established stablecoins like USDC. The new reserve structure and regulatory compliance highlight the significance of this event for the development of decentralized finance.
