The race to launch Hyperliquid's USDH stablecoin is heating up, with Sky, formerly Maker, joining the bidding war. Hyperliquid's planned USDH stablecoin has become a sought-after asset, sparking competition among major stablecoin issuers.
Hyperliquid announced on September 5, 2025, that the protocol's reserved stablecoin, USDH, would be released through an on-chain validator voting process. This process, conducted entirely on Hyperliquid L1, will be similar to the delisting vote. The selected team will then participate in a regular spot deployment gas auction. Hyperliquid views USDH as a highly demanded, regulated symbol that will be used to build a compliant, Hyperliquid-first native stablecoin.
Sky co-founder Rune Christensen has proposed that his crypto protocol issue and manage Hyperliquid's USDH stablecoin. Christensen's proposal includes offering a customizable token with yields comparable to US Treasury rates. He stated that "By using Sky to power USDH, the Hyperliquid community will gain unparalleled advantages that no other stablecoin project can offer". Sky (formerly MakerDAO) created and supports USDS and Dai (DAI). Sky also plans to list the USDH stablecoin on Hyperliquid.
Sky's proposal includes offering 4.85% annualized rewards, $220 million in instant USDC redemption liquidity, and the ability to mobilize over $8 billion in assets. The USDH would be backed by the Sky protocol's seven-year security record.
Hyperliquid's high-performance L1 public chain concept has created immense potential for its stablecoin offerings. In August, Hyperliquid achieved $106 million in revenue, a 23% month-over-month increase. Monthly contract trading volume approached $400 billion, with DEX Perp commanding approximately 70% of the market share.
The voting process will take place entirely on-chain via Hyperliquid L1 transactions. Validators will vote to select the team most capable of building a locally minted, Hyperliquid-first stablecoin. Three major stablecoin issuers and two teams within the ecosystem are competing, and the results will be announced on the 14th.
