Hyperliquid has officially launched its own stablecoin, USDH, developed by Native Markets, generating over $2 million in trading volume shortly after its debut on Wednesday.

At the time of writing, the USDH/USDC pair on Hyperliquid traded at 1.001, with total trading volume reaching 2,244,932.79 USDC.

Last week, Hyperliquid’s validator community selected Native Markets to issue the USDH ticker following a competitive bidding process that included proposals from Paxos, Ethena, Frax, and other contenders.

USDH, pegged to the U.S. dollar, is issued natively on HyperEVM and backed by cash and short-term U.S. Treasury securities. The stablecoin is designed to reduce Hyperliquid’s reliance on external stablecoins, such as Circle’s USDC, which currently makes up over 90% of the platform’s deposits.

By introducing a homegrown stablecoin, Hyperliquid aims to retain liquidity and yield generated from reserves within its ecosystem. Revenue from USDH’s reserve income will be allocated via a 50-50 split, with half directed toward funding HYPE buybacks and the other half supporting broader ecosystem growth initiatives.

Hyperliquid is the world’s leading on-chain perpetuals decentralized exchange, controlling over 35% of global activity. However, its market share has declined sharply from a peak of 70% in May.