Hyperliquid is planning to launch its own native stablecoin, USDH, a move that has already caused its HYPE token to jump 3.4% in a single day. The proposal is currently a concept and must first be approved by validators through an on-chain vote before it can go live.
The platform has confirmed that the rollout of USDH is entirely dependent on community governance. This process, similar to how Hyperliquid handles asset delistings, ensures that the community has the final say on the stablecoin's design and development team.
This announcement comes at a time when the stablecoin market is seeing a lot of activity, with new tokens from companies like JPMorgan and Trump-backed WLFI entering the space. Hyperliquid aims to differentiate USDH by creating a more transparent, decentralized alternative. The proposed model is inspired by a dual-token system, where one token manages peg stability while another distributes yield, offering more clarity and control for users.
In addition to the stablecoin proposal, Hyperliquid is implementing a major protocol update that will slash fees on dual-currency spot market pairs by 80% and introduce public spot quotes for greater market transparency. These updates, along with the USDH proposal, highlight Hyperliquid's commitment to building a more transparent and cost-effective decentralized trading environment.
September 2025, Cryptoniteuae