Hyperliquid Advances Towards Launch of Its Own Stablecoin
A proprietary stablecoin could reduce Hyperliquid’s reliance on USDC and might help capture revenue from backing assets.
What to know:
- Popular decentralized exchange Hyperliquid is moving forward with plans to launch a stablecoin pegged to the U.S. dollar, as announced in a Discord post.
- The exchange has reported hefty trading numbers, with $398 billion in perpetuals and $20 billion in spot trades, primarily fueled by Circle’s USDC.
- The intent is to create a compliant stablecoin that integrates seamlessly into their ecosystem.
Decentralized exchange Hyperliquid (HYPE) is set to roll out a new U.S. dollar stablecoin. This follows a recent announcement posted by the Hyperliquid Foundation on Discord. The ticker symbol USDH has been reserved, and its allocation will soon undergo voting through an on-chain governance process. Teams interested in deploying the USDH can submit their proposals, and a validator quorum will select the winning group.
For many in the industry, creating stablecoins has become pivotal due to their role in facilitating trades and providing liquidity. The stablecoin sector has surged to a valuation of approximately $270 billion, predominantly led by Tether’s USDT and Circle’s USDC. However, regulatory shifts, particularly with moves like the GENIUS Act in the U.S., are driving many companies to design their own tokens tailored for their unique platforms. Notably, crypto wallet provider MetaMask is collaborating with infrastructure company M0 to launch its own stablecoin, while Stripe has also developed an internal stablecoin via Bridge.
With Hyperliquid’s recent trading activity indicating a robust demand, the exchange managed an impressive $398 billion in trading for perpetual derivatives and $20 billion in spot trades last month. Currently, Circle’s USDC captures 95% of the $5.6 billion stablecoin market on the platform.
By implementing its own stablecoin, Hyperliquid aims to lower its dependency on Circle and potentially generate income from the assets backing this new token.
