Hyperliquid is preparing for the potential launch of its own native stablecoin, USDH, a move that could significantly alter its revenue model. The launch is contingent on a formal proposal and a subsequent validator vote, rather than being an executive decision.

The strategic incentive is clear: Hyperliquid currently holds $5.5 billion in USDC deposits. By converting these balances to its native USDH, the protocol could capture the underlying yield. At a 4% interest rate, this would translate to approximately $220 million in incremental annual revenue for the platform's token holders, representing a ~17% increase.

This development poses a direct challenge to stablecoin issuers like Circle. As decentralized exchanges and other platforms grow, they are increasingly exploring ways to internalize revenue streams previously captured by third-party stablecoin providers. The move from being a simple distribution channel for USDC to a direct competitor marks a significant strategic shift in the stablecoin ecosystem.