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The race to select Hyperliquid’s native stablecoin, USDH, is heating up, with the Stripe-aligned Native Markets team taking an early lead. As of Thursday morning in Hong Kong, Native Markets has captured 30.8% of the delegated stake, thanks to support from heavyweight validators like infinitefield.xyz and Alphaticks. However, the majority of voting power remains unassigned, keeping the final outcome very much uncertain.
The vote is high stakes. The winner will control a $5.5 billion prize in USDC deposits and gain influence over one of the fastest-growing decentralized finance (DeFi) exchanges. With so much at play, this contest is being closely watched by the broader crypto community.
Current Standings: Native Markets Ahead, But Rivals Close Behind
Following Native Markets, the closest competitors are Paxos Labs, regulated in New York, with 7.6% of votes, and the innovative Ethena team, holding 4.5%. While these teams have presented ambitious proposals, they have yet to gain the traction seen by Native Markets. Other contenders, including Frax and Agora, are also in the mix but remain behind in the early stages.
Despite Native Markets’ early momentum, more than half of the total stake—around 57%—is still unassigned. This “silent majority” includes some of the network’s most influential validators, such as Nansen x HypurrCollective, controlling 18% of the vote alone, and institutional heavyweight Galaxy Digital.
The Undecided Whales Could Decide the Outcome
The final result will largely depend on where these major validators place their votes. Their decisions will determine whether Native Markets’ early lead becomes a decisive advantage or if the contest remains highly competitive until the September 14 deadline.
Each vote in this high-stakes scenario carries significant weight, as the winning stablecoin will directly influence Hyperliquid’s massive financial ecosystem. With nearly 80% of the decentralized perpetuals trading market flowing through Hyperliquid, the impact of this vote extends far beyond the initial launch of USDH.
A Prize Beyond Measure
The stakes in this race are unprecedented. Hyperliquid currently holds $5.5 billion in USDC deposits, which amounts to roughly 7.5% of the total circulating USDC supply. Launching USDH as the native stablecoin would represent a major shift, redirecting hundreds of millions of dollars in annual Treasury yield to the winning protocol.
Contenders have pitched ambitious plans to attract validator support. Paxos has promised to use 95% of its earnings to buy back Hyperliquid’s native HYPE token, while Frax has pledged to distribute 100% of its yield directly to users. Agora is offering both institutional-grade custodianship and 100% of its net yield, demonstrating the high stakes and aggressive strategies employed by competitors.
Strategic Implications for DeFi
Winning this vote would not just mean minting a new stablecoin; it would provide the victor with the opportunity to shape the future financial rail of Hyperliquid’s ecosystem. The chosen stablecoin will become a foundational element for decentralized trading, lending, and other financial services, giving the winner significant influence in the DeFi landscape.
Moreover, the integration of USDH would affect liquidity, market dynamics, and potentially the pricing of other stablecoins. With Hyperliquid commanding a dominant share of decentralized perpetuals trading, the adoption of USDH could set new benchmarks for how stablecoins interact with DeFi protocols.
Looking Ahead
As the vote continues, all eyes are on the undecided validators and major institutional participants. Their decisions in the coming days will determine the winner of this high-stakes contest. Native Markets’ early lead gives it momentum, but the final outcome remains uncertain given the large share of voting power still up for grabs.
By September 14, the DeFi community will learn which team will mint Hyperliquid’s USDH stablecoin and gain control of a significant portion of the exchange’s financial infrastructure. The winner will not only manage the $5.5 billion prize but will also help define the future trajectory of one of crypto’s most influential decentralized exchanges.
