What happened?
Native Markets has been granted the USDH ticker for Hyperliquid’s native stablecoin. This comes after a contentious governance vote, in which heavy hitters like Paxos and Ethena also bid for the ticker. Despite offering a deep PayPal integration, incentives, and capped revenue share, Paxos was unable to gain traction, while Ethena quit the race due to concerns about its non-native infrastructure.
Who does this affect?
The decision impacts all stakeholders in the Hyperliquid ecosystem. Native Markets’ victory means that its plans for a phased introduction of USDH, backed by BlackRock and Superstate-supported reserves, will move forward. This could potentially bring new opportunities and challenges for everyone involved, from investors and validators to other businesses operating in the crypto space.
Why does this matter?
This development is significant as it represents further consolidation of the burgeoning stablecoin market, with Native Market emerging as a key player. This could spur innovation and competition within the sector, while also impacting strategies of rival firms. With the U.S. Treasury Department projecting the stablecoin market to surpass $2 trillion by 2028, the stakes are high, and these movements could shape the future direction of the industry.