Decentralized perpetuals exchange Hyperliquid could soon be launching a native stablecoin, dubbed USDH, in its next major network upgrade, according to an update shared on the project’s Telegram channel on Sept. 5.
The USDH ticker, currently reserved by the protocol, will be released through an on-chain vote by validators. After the upgrade, validators will be able to decide which user address is allowed to buy the ticker using Hyperliquid’s Layer 1 (L1) system, similar to how delisting votes work, the announcement explained.
The project touts USDH as “well-suited for a Hyperliquid-first, Hyperliquid-aligned, and compliant USD stablecoin.” Stablecoins are digital assets typically pegged 1:1 to fiat currencies like the U.S. dollar.
Because USDH is expected to be a key asset on the platform, validators will vote on the team best able to build the stablecoin. Even after being chosen, the team must still take part in the usual spot deployment gas auction.
Following the announcement, Hyperliquid’s native token HYPE surged to $47.42. Since then, it has slightly retraced to $46.51, still up 4% over the past 24 hours, per CoinGecko.
Hyperliquid also said in its announcement that spot pairs between two quote assets will see an 80% reduction in taker fees, maker rebates, and user volume contributions. The change is designed to improve liquidity and make trading easier for users.
“For context, spot quote assets will become permissionless in the future, starting with testnet,” the announcement concluded. “There will be a staking requirement and slashing criteria to be announced.”
The Hyperliquid ecosystem has been a standout performer in 2025. It also drew attention recently after a huge weekend when it handled more Bitcoin (BTC) spot volume than both Coinbase and Bybit.
Its Layer 1’s total value locked (TVL) has also grown from $317 million in January to around $2.5 billion today, per DeFiLlama.
Stablecoin Hype Continues
Hyperliquid’s plans come as the stablecoin sector continues to see rapid growth – over the past week alone, total stablecoin market capitalization has grown over 5% to exceed $285 billion, per DeFiLlama. Tether’s USDT currently holds a 58% market share.
This expansion comes as more institutions adopt Digital Asset Treasury (DAT) strategies, while stablecoin regulation has become clearer following the passage of the GENIUS Act by Congress and its signing into law by President Donald Trump in mid-July.
