Native Markets wins the Hyperliquid stablecoin auction, with USDH code officially activated.

After weeks of intense competition and community voting, Native Markets officially announced this Sunday that USDH will be adopted as the official code for Hyperliquid's USD stablecoin. This move signifies the conclusion of the highly followed stablecoin bidding war and opens a new chapter for the future development of Hyperliquid's stablecoin.

Native Markets confirms taking over the issuance and management of USDH

Max Fiege, the founder of Native Markets, posted on X (formerly Twitter) that the team will launch the first Hyperliquidity Improvement Proposal (HIP) targeting USDH in the coming days and will issue an ERC-20 token version based on the Ethereum network.

He also revealed the plan to launch:

1. Initially, the maximum minting and redemption limit for each transaction will be set at 800 USD.

2. Subsequently, the USDH/USDC spot trading pair will be opened.

3. Finally realize unlimited minting and redemption functions.

Bidding Process and Market Reaction

Last week, after the synthetic stablecoin issuer Ethena announced its exit from the competition, the probability of winning bids in Native Markets on the Polymarket surged to over 99%.

However, this bidding process is not without controversy – some high-level figures in the cryptocurrency industry question the lack of transparency in the selection process and even suspect the existence of "behind-the-scenes agreements."

Dragonfly venture capital firm managing partner Haseeb Qureshi criticized, saying: "Apart from Native Markets, hardly any validators are willing to consider other bidders, this hardly resembles public competition."

Insights from the Stablecoin Market

Helius CEO Mert Mumtaz, a remote procedure call (RPC) node service provider, believes that this bidding war reflects the high commoditization of stablecoins.

He predicts that in the future, the code for USD stablecoins will be abstracted, and the exchange front end will only display a unified "USD", while the exchanges between different stablecoins will be automatically completed in the background, and users will not need to follow the issuing parties and technical details behind it.

Conclusion

With the official launch of the USDH code by Native Markets, the issuance and management of Hyperliquid stablecoin has entered a new phase. Although the bidding process has sparked some controversy, the market generally believes that Native Markets' takeover will bring higher liquidity and improved infrastructure for USDH. In the future, with the implementation of HIP proposals and the ERC-20 version, the applications of USDH in decentralized trading and cross-chain payments are worth following.