Stablecoin project USDH announced by Hyperliquid, leading to a 3% jump in HYPE's stock price within the day.
In a significant move, the Trump-backed WLFI has entered the stablecoin market with its USD1, following Hyperliquid's announcement of its proposed native dollar-pegged stablecoin, USDH. The announcement has sparked a positive response from the markets, with the HYPE token surging 3.4% to $47 at press time, according to CoinMarketCap data.
The USDH stablecoin employs a dual-token architecture for enhanced transparency. One token maintains the peg, while another captures yield from reserves, offering real-time transparency. This model is inspired by Tether, a well-known stablecoin in the industry.
The developer team selected to issue the USDH stablecoin was chosen through direct on-chain voting by Hyperliquid validators. Native Markets, which secured 70% of the validator votes, will be responsible for the development and issuance of USDH.
Hyperliquid has also announced a major protocol update, reducing fees for dual-currency spot market pairs by 80% and making public spot quotes available. This update is aimed at improving the platform's efficiency and user experience.
The launch of USDH is subject to on-chain validator voting approval. The voting process for USDH is similar to Hyperliquid's asset delisting process, ensuring a democratic and transparent decision-making process.
Meanwhile, the daily volume of HYPE token has reached an impressive $29B, nearing its All-Time High (ATH). JP Morgan is also reportedly moving to launch their own stablecoin-like token, JPMD, further highlighting the growing interest in stablecoins.
Interestingly, Tether co-founder Reeve Collins chairs STBL, a decentralized stablecoin protocol that has founded USTT, YLD, and STBL stablecoins. This collaboration could potentially pave the way for further innovations in the stablecoin market.
In related news, President Trump signed the Genius Act into law in July 2025, which could have significant implications for the cryptocurrency industry. Meanwhile, USDC and USDT have seen on-chain supplies hit new peaks, indicating a growing demand for stablecoins.
As the stablecoin market continues to evolve, the launch of USDH by Hyperliquid and the positive reaction it has received from the markets is a testament to the growing interest and confidence in this sector.
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