Native Markets Secures Approval to Launch USDH Stablecoin Following Validator Vote

Morning Briefing: Key Developments in Asia’s Cryptocurrency Markets

Good Morning, Asia! Welcome to your daily Asia Morning Briefing, your trusted source for the latest updates and analyses during U.S. market hours. In today’s briefing, we focus on a significant development in the cryptocurrency realm: Native Markets’ recent victory in the Hyperliquid validator vote to issue the USDH stablecoin. Read on for insights on market movements, cryptocurrency regulations, and what’s next for USDH.

Native Markets Wins the Vote: The Launch of USDH

In a notable turn of events, Native Markets has secured the right to issue the USDH stablecoin after a decisive validator vote within the Hyperliquid community. This outcome concludes a weeklong contest that drew attention from leading proposals, including those from Paxos, Frax, Sky (formerly known as MakerDAO), and Agora. The voting results revealed that Native Markets garnered approximately 70% of the votes, significantly outpacing Paxos with 20% and Ethena with a mere 3.2%.

Co-founded by former Uniswap Labs president MC Lader, researcher Anish Agnihotri, and early Hyperliquid backer Max Fiege, Native Markets is poised to roll out USDH in just a few days. Fiege announced the news in a post on X, emphasizing the project’s readiness to begin implementation.

What to Expect from USDH’s Launch

The upcoming launch of USDH will initially feature capped mints and redemptions, followed by the introduction of a USDH/USDC spot trading pair. As liquidity increases and market confidence builds, the caps are expected to be lifted. USDH aims to compete directly with Circle’s USDC, which currently dominates Hyperliquid with nearly $6 billion in deposits, accounting for about 7.5% of its circulating supply.

Despite the competitive landscape, USDH’s proposal emphasized credibility and validator alignment over aggressive yield promises. While competing bids from Paxos, Frax, and Sky aimed to enhance ecosystem incentives through HYPE buybacks and user yields, Native Markets chose to prioritize trust and trading expertise.

Market Movements: Bitcoin and Ethereum Surge

In recent market trends, Bitcoin (BTC) has successfully reclaimed the $115,000 mark, bolstered by positive inflows into exchange-traded funds (ETFs) and easing U.S. inflation data. Analysts note that while BTC is gaining momentum, there is a resistance level at approximately $116,000, as highlighted by CoinDesk’s market insights. For those interested in Bitcoin, consider checking out our guide on Bitcoin ETFs.

Similarly, Ethereum (ETH) is trading above $4,600, benefiting from strong ETF inflows as well. This price action indicates a growing interest in both leading cryptocurrencies as institutional adoption increases.

Gold and Other Market Insights

Meanwhile, gold continues to trade near record highs, driven primarily by expectations of dollar weakness tied to anticipated Federal Reserve rate cuts. Investors are closely monitoring the interplay between traditional assets and cryptocurrencies as both markets evolve.

Regulatory Updates: Pakistan’s Crypto Licensing Invitation

In regulatory news, Pakistan’s crypto regulator has extended an invitation to cryptocurrency firms to obtain licenses, targeting a potential market of 40 million local users. This move is a significant step towards formalizing the cryptocurrency landscape within the region, providing greater legitimacy and operational clarity to local firms.

IRS Surveillance on Crypto Investors

In the United States, the Internal Revenue Service (IRS) is expanding its surveillance efforts on crypto investors. This initiative aims to ensure compliance with tax regulations in the ever-evolving cryptocurrency space. Investors should stay informed about their obligations to avoid potential penalties.

Conclusion: Looking Ahead in the Crypto Market

As the cryptocurrency market continues to evolve, the launch of USDH by Native Markets marks a crucial development that could reshape the competitive landscape of stablecoins. With Bitcoin and Ethereum showing strong performance and regulatory frameworks tightening globally, it’s essential for investors to stay updated on these trends. For insights on how to buy Bitcoin and other cryptocurrencies, check our guides on buying Bitcoin and buying cryptocurrency.