View the proposal and discussion on Discord: https://discord.com/channels/1029781241702129716/1415245634016907314/1415245634016907314

Abstract

A stablecoin does not have a sensational headline - it has sound fundamentals. Transparency, regulatory consideration, and proven technology are the elements that ensure trust and efficiency.

As the first native stablecoin on Hyperliquid, USDH will embody those fundamentals: it will be a fiat-backed, open participation stablecoin designed to maximize value:

  1. Hyperliquid community

  2. Validators

  3. Direct value of HYPE

USDH is a reliable and efficient way to power the Hyperliquid flywheel. It is backed 1:1 by US dollar-denominated cash and short duration treasury bills only, and features a simple mechanism that uses reserve proceeds to buy back and stake HYPE, to then distribute pro rata rewards onchain to the community.

USDH powered by BitGo establishes a resilient USD-pegged asset, fortified by industry-leading custody and compliance standards. Stablecoins are no longer just about issuance, it's about trust; what better name than BitGo to provide trust in digital assets.

Our Promise

This aims to be a proposal, but we are of the belief that this should be a collaborative effort. We are here to shape and adjust to the needs of the community and foundation to ensure it is the best possible financial product built on Hyperliquid. There is no better builder for a compliant, secure, trusted stablecoin than BitGo.

BitGo's USDH Proposal

USDH will be issued natively on Hyperliquid at parity with the U.S. dollar, enabling seamless 24/7/365 minting and redemption across USDC, USDT, fiat (via integrated banking rails), and other supported assets.

  • Hyperliquid Native: USDH will be bilaterally deployed on both HyperEVM and HyperCore

  • Stable: Each USDH token will be fully backed 1:1 by liquid USD-denominated assets, including bank deposits, permitted money market funds, short-term T-bills, and overnight repurchase agreements. USDH should not be a wrapper of other tokens.

  • Accessible: Partnering with Chainlink, we will employ CCIP to launch interoperability across other blockchains.

  • Transparent: Users can verify proof-of-reserves by relying on third-party audits, conducted twice a month, by top-tier, US-based audit firms. Our partnership with Chainlink could utilize their Proof of Reserves product to ensure onchain transparency.

  • Clear and Equitable Reward Logic: Operational yields and earnings will flow directly to the Hyperliquid community.

Reward Logic

  • Reserve proceeds will be primarily used to purchase and stake HYPE proportionally and in a decentralized manner. No more than 20% of HYPE from USDH reserve proceeds will be staked to any single validator.

    • A portion of this proceeds can be sent to the Assistance Fund, as set by the community.

    • Any unstaked HYPE will be included in the pool for pro rata distribution to USDH holders.

  • Rewards from HYPE staking will be returned to USDH holders pro rata.

    • Everything is on-chain, programmatic, and transparent.

BitGo's Take

BitGo will take a 30bps (0.003%) fee on the total dollar amount that is held in reserves.

We want to give as much back to the community as possible, but also want to make sure this is funded sufficiently to handle this on a go forward basis. We do have to consider the possibility of future interest rates dropping significantly.

Why BitGo is the Ideal Infrastructure

Regulated Global Operations: We lead with compliance and regulatory first; we operate 6 digital asset trust companies around the world, and have the banking relationships in place to be able to build the largest fiat rails into USDH.

  • BitGo Trust Company: State chartered trust company

  • BitGo Trust Company, New York: State chartered trust company

  • BitGo Europe GmbH: MiCA complaint German custodial entity

  • BitGo Europe ApS: Regulated entity in Denmark

  • BitGo Custody MENA FZE: VARA licensed Dubai custodial entity

  • BitGo Singapore Pte. Ltd.: MAS regulated Singapore custodial entity

Unmatched Distribution & Liquidity: Tap into BitGo's thousands of institutional clients for instant USDH minting and trading, amplified by partnerships with market makers, exchanges, fintechs, and banks for robust liquidity.

Trusted Leadership: BitGo has been a trusted provider since 2013. We take a no-compromises approach to security, have grown assets on platform to over $90B in size, manage one of the largest staking positions in the world, and have launched major assets like USD1 ($2.65B market cap) and WBTC ($14.2B market cap), with end-to-end infrastructure proven at scale.

Banking & Reserve Management: Strong existing fiat rails via financial institution partners in multiple regions around the globe.

Conclusion

We think that the best solution is a simple one, because complexity adds operational risk.

With that said, we know that the community is what has made Hyperliquid great. We will work with foundations, community members, and the validator network to amend this proposal in order to create the best possible solution for all. We look forward to your feedback.

Also, check out our custom PiP: https://x.com/BitGo/status/1960415780392329641

Deployer Wallet: 0x0DAab4bD43c15c96140502627b931471988E7Da3

Hyperliquid.

Learn about launching a stablecoin with BitGo here: https://www.bitgo.com/products/stablecoin-as-a-service/

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About BitGo

BitGo is the digital asset infrastructure company, delivering custody, wallets, staking, trading, financing, and settlement services from regulated cold storage. Since our founding in 2013, we have been focused on accelerating the transition of the financial system to a digital asset economy. With a global presence and multiple regulated entities, BitGo serves thousands of institutions, including many of the industry's top brands, exchanges, and platforms, and millions of retail investors worldwide. For more information, visit www.bitgo.com.

(c)2026 BitGo, Inc. (collectively with its parent, affiliates, and subsidiaries, "BitGo"). All rights reserved. BitGo Bank & Trust, National Association ("BitGo Bank & Trust") is a national trust bank chartered and regulated by the Office of the Comptroller of the Currency (OCC). BitGo Bank & Trust is a wholly-owned subsidiary of BitGo Holdings, Inc., a Delaware corporation headquartered in Palo Alto, California. Other BitGo entities include BitGo, Inc. and BitGo Prime LLC, each of which is a separately operated affiliate of BitGo Bank & Trust.

BitGo does not offer legal, tax, accounting, or investment advisory services. The information contained herein is for informational and marketing purposes only and should not be construed as legal, tax, or investment advice. You should consult with your own legal, tax, and investment advisor for questions about your specific circumstances.

Digital assets are subject to a high degree of risk, including the possible loss of the entire principal amount invested. Past performance and illustrative examples do not guarantee future results. The value of digital assets can fluctuate significantly and may become worthless. No BitGo communication is intended to imply that any digital asset services are low-risk or risk-free. BitGo is not a registered broker-dealer and is not a member of the Securities Investor Protection Corporation ("SIPC") or the Financial Industry Regulatory Authority ("FINRA"). Digital assets held in custody are not guaranteed by BitGo and are not subject to the insurance protections of the Federal Deposit Insurance Corporation ("FDIC") or SIPC. Custody and other digital asset services are subject to eligibility, jurisdictional, and regulatory restrictions. Availability of specific products and services may vary by location and entity.

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