Native Markets gains early momentum in the voting for Hyperliquid’s USDH stablecoin.

The stakes are high as a crucial vote unfolds to determine the native stablecoin for Hyperliquid. Currently in the lead is Native Markets, aligned with Stripe, although their lead is precarious. The winner will control a significant $5.5 billion ecosystem and a vital DeFi channel.

Early Votes Favor Native Markets

The voting race for Hyperliquid’s native stablecoin, USDH, has commenced, with Native Markets, supported by validators like infinitefield.xyz and Alphaticks, securing 30.8% of the delegated participation as of Thursday morning in Hong Kong. However, with the majority of votes yet to be cast, the ultimate outcome remains uncertain.

Close contenders include New York-regulated Paxos Labs with 7.6% and innovative Ethena, lagging behind at 4.5%. Other competitors, despite their strong proposals, have not yet gained significant traction in the votes.

Undecided Whales and the Path to Victory

This contest is far from settled. Notably, over half of the total voting power—57%—is still unassigned. This ‘silent majority’ includes some of the most influential validators on the Hyperliquid network, notably the largest, Nansen x HypurrCollective, which commands over 18% of the votes, and institutional giant Galaxy Digital.

The final decision hinges on where these major players ultimately cast their votes. Their choices will determine whether Native Markets’ initial momentum is a decisive opening blow or merely a fleeting advantage in a protracted battle, with the deadline for this crucial decision set for September 14.

Monetary Implications

The implications of this contest extend beyond a simple token launch; it represents a battle to integrate a new stablecoin directly into the financial backbone of a DeFi powerhouse. Hyperliquid currently manages an astonishing $5.5 billion in USDC deposits, accounting for roughly 7.5% of the total circulating supply of this stablecoin. Transitioning to USDH would be monumental, redirecting hundreds of millions in annual Treasury yields to the winning protocol.

Contenders have come to the table with lavish promises to attract validators. Paxos has pledged to devote 95% of its profits to repurchasing Hyperliquid’s native HYPE token. Frax is offering 100% of its yield directly to users, while Agora proposes an impressive 100% of its net yield alongside institutional-quality custody.

With Hyperliquid already controlling nearly 80% of the decentralized perpetual trading market, the winner of this contest won’t just launch a stablecoin; they will create a foundational framework for the future of decentralized finance.

Market Updates

• BTC: Bitcoin is trading at $114,053, up 2.6% over the past 24 hours. This increase reflects a short-term rally fueled by positive risk sentiment, although a longer-term consolidation remains underway.

• Ethereum: Ethereum is trading at $4,373.99, up 2%, as investors overlook a recent massive reduction that affected over 30 validators, indicating the underlying resilience of the network.

• Gold: Gold is holding steady near $3,635 per ounce after peaking at $3,674 on Tuesday. Investors are awaiting U.S. inflation data, while investment bank ANZ has raised its year-end target for gold to $3,800, predicting a potential peak near $4,000 by next June.