Hyperliquid Proposes USDH Stablecoin, HYPE Surges 3% Intraday
Decentralized exchange Hyperliquid plans to launch USDH, a native dollar-pegged stablecoin, which has led to a 3% increase in HYPE. The proposal is pending validator vote before moving forward.
- Voting occurs on-chain, allowing validators to approve the design and select the development team.
- USDH is not yet listed on Hyperliquid's site, but HYPE rose to $47 amid positive market reaction.
Since the signing of the Genius Act in July 2025, USDC and USDT have seen increased on-chain supplies. New entrants like Trump-backed WLFI's USD1 and JP Morgan's JPMD are entering the space.
Hyperliquid aims for decentralized stablecoins that offer more than mere dollar pegging. STBL's dual-token model, created by Tether co-founder Reeve Collins, showcases potential for decentralized finance:
- One token maintains the peg while another captures yield from reserves.
- This structure enhances transparency and user control over risks.
A recent protocol update from Hyperliquid will reduce fees for dual-currency spot market pairs by 80% and improve transparency with public spot quotes. Details on collateral thresholds will be provided later.
