Architectural Cases

Hyperliquid is poised to introduce USDH, its proprietary stablecoin, designed to maintain a 1:1 peg with the US dollar. This strategic initiative aims to re-capture an estimated $220 million in annual Treasury yield that currently flows to external stablecoin providers. By bringing stablecoin issuance in-house, Hyperliquid intends to bolster its ecosystem, channeling this significant revenue back to its participants and HYPE token holders. The decision regarding which entity will issue USDH will be made through a validator vote scheduled for September 14, 2025, following a rigorous competitive bidding process involving multiple prominent stablecoin issuers. This development marks a pivotal moment for Hyperliquid, promising to enhance platform efficiency, reduce user costs, and foster greater economic sustainability within its decentralized finance (DeFi) environment.

The introduction of USDH is driven by Hyperliquid's substantial stablecoin deposits, predominantly in USDC, which currently amount to billions of dollars. With a considerable portion of Circle's USDC supply residing on Hyperliquid, the platform recognizes the missed opportunity in terms of yield generation. USDH is envisioned as a foundational settlement asset, seamlessly integrated with Hyperliquid's high-performance Layer-1 blockchain infrastructure. The competitive selection process underscores the strategic importance of this venture, with each bidder proposing unique technical architectures, revenue-sharing models, and compliance strategies. Beyond direct financial benefits, USDH is expected to foster a more cohesive and incentivized ecosystem, providing users with cost savings, native integration advantages, and access to significant ecosystem development funds.

The Strategic Imperative Behind USDH

Hyperliquid's decision to launch USDH, its own USD-pegged stablecoin, is a strategic move aimed at addressing the substantial revenue leakage to external stablecoin issuers. With over $5.6 billion in stablecoin deposits, largely consisting of USDC, Hyperliquid currently foregoes an estimated $220 million in annual Treasury yield. USDH is designed to reclaim this value, redirecting it back into the Hyperliquid ecosystem, benefiting HYPE token holders and other participants. This initiative is more than just about financial gain; it's about establishing a robust, native financial instrument that aligns with Hyperliquid's core infrastructure and long-term vision, ensuring greater control and economic self-sufficiency for the platform in the highly competitive DeFi landscape.

The development of USDH reflects Hyperliquid's ambition to create a more integrated and efficient financial ecosystem. By offering a native stablecoin, Hyperliquid seeks to provide users with an 80% reduction in trading fees for USDH pairs, eliminating bridge fees, and enabling direct fiat on/off-ramps. This native integration is crucial for high-frequency traders who require sub-second settlement speeds and seamless operation within Hyperliquid's 100,000 orders-per-second infrastructure. Furthermore, the proposals from various bidders include substantial ecosystem funding and incentives, ranging from $20 million to $150 million, allocated for builders, market development, and user rewards. This comprehensive approach aims to solidify USDH's position as a core asset, driving value accrual and fostering innovation within the Hyperliquid community.

The Competitive Landscape and Future of USDH

The competitive bidding process for USDH issuance rights has attracted six major stablecoin issuers, highlighting the significance of this opportunity. Native Markets is currently seen as the frontrunner, closely followed by Paxos and Ethena Labs. Each contender brings a unique proposition, including diverse backing mechanisms (e.g., US Treasury Bills, BlackRock reserves), revenue-sharing models, and strategic partnerships. The validator vote on September 14, 2025, will be a critical determinant, shaping the technical architecture, compliance framework, and overall trajectory of USDH. This highly anticipated decision will not only impact Hyperliquid's financial future but also set a precedent for native stablecoin integration within large DeFi platforms, potentially influencing broader market trends in the stablecoin space.

The successful implementation of USDH hinges on several factors, including its ability to maintain a stable 1:1 peg with the US dollar, achieve sufficient liquidity bootstrapping, and ensure robust regulatory compliance. All bidding proposals emphasize full collateralization with low-risk assets and 1:1 redeemability to mitigate depegging risks. Furthermore, a strong focus on compliance with regulations like the GENIUS Act and MiCA is paramount for institutional adoption and long-term viability. USDH's success is also intrinsically linked to Hyperliquid's continued dominance in the DeFi perpetuals market. With its significant trading volume and large USDC holdings, Hyperliquid has the scale to make USDH a major player, potentially reshaping the competitive landscape for stablecoins and driving further innovation in the decentralized finance sector.

In a significant development for the financial technology sector in the Middle East and North Africa (MENA), Sorbet, an innovative payment platform, has unveiled 'Sorbet for Business'. This initiative is poised to transform cross-border transactions for businesses, offering a streamlined and cost-effective approach to international payments. Built on stablecoin technology, Sorbet for Business aims to simplify global financial interactions, catering specifically to the needs of emerging enterprises, marketing firms, and small to medium-sized businesses navigating the complexities of worldwide commerce. The platform's introduction marks a pivotal moment in the region's digital finance evolution, promising enhanced efficiency and accessibility in a rapidly globalizing market.

The genesis of Sorbet traces back nearly a decade, rooted in the shared vision of co-founders Maher Ayari and Rami Djebari. Their journey began during their university years, with Maher focusing on finance at McGill and Rami on computer science at Concordia. After accumulating extensive experience in venture capital, artificial intelligence, and financial technology, both individuals independently recognized the transformative potential of stablecoins in resolving real-world financial inefficiencies. This shared conviction led them to leave their respective careers in 2023, driven by a mutual understanding that stablecoins offered a viable solution to the prevalent issues within global payment systems.

Their observations highlighted a growing trend in regions like Latin America and Southeast Asia, where freelancers and small businesses increasingly adopted stablecoins such as USDT and USDC due to the limitations of conventional platforms like PayPal, which were often characterized by slow processing, high costs, and arbitrary user restrictions. However, the MENA region presented a unique opportunity, largely untapped by modern, reliable cross-border payment solutions utilizing these digital assets. This significant gap in the market fueled their ambition: to democratize stablecoin usage, making it accessible and straightforward for everyone, devoid of the typical complexities associated with cryptocurrencies, such as managing digital wallets, incurring gas fees, or understanding intricate crypto jargon. Their goal was to create a rapid, user-friendly, and economical method for transferring funds, particularly for those with the most pressing need.

Today, Sorbet proudly stands as a solution developed within Riyadh, specifically tailored for Saudi Arabia and the broader MENA landscape. Its journey gained momentum through Antler’s inaugural Riyadh cohort and secured support from notable entities like Outlier Ventures and early PayPal executive Chuck Stoops. Initially, Sorbet's operations commenced as a restricted beta program for freelancers, gradually expanding into a robust system that has successfully processed close to $1 million in transactions across Egypt, Morocco, Nigeria, and the UAE. This achievement was realized with minimal marketing efforts, yet it fostered a rapidly expanding user base. With the launch of Sorbet for Business, the team is now pursuing a more ambitious objective: equipping companies with the necessary tools to seamlessly operate on a global scale from their inception.

'Sorbet for Business' is conceptualized as a foundational financial infrastructure for contemporary, globally-oriented enterprises in the MENA region. Its core offerings are designed to deliver clear advantages: a unified dashboard for managing payments in USD, EUR, and USDC from international clients, eliminating the need for multiple accounts; expedited and simplified transactions with same-day payments and instant invoicing; cost-effective transfers featuring a mere 1% fee on incoming payments and zero fees for team payouts; versatile multi-currency disbursement options including SEPA, ACH, wire, or USDC; and inherent security through self-custodial accounts that grant users absolute control over their assets. Looking ahead, Sorbet plans to introduce support for over 30 global currencies, corporate cards for international expenditures, and yield-generating USDC balances offering up to 10% APY, further expanding its comprehensive suite of services.

Sorbet's ambition extends beyond merely digitizing existing financial practices; it seeks to fundamentally reimagine them. Drawing inspiration from innovative financial platforms such as Brex and Mercury, Sorbet is pioneering the establishment of the first 'on-chain bank' dedicated to Saudi Arabia's vast small and medium-sized business sector, which comprises over 1.3 million entities. This initiative aims to integrate the speed and transparency inherent in blockchain technology with a user experience as intuitive and seamless as any modern digital bank. Whether facilitating international funding for a Riyadh-based startup or enabling a Cairo agency to compensate its global contractors, Sorbet aspires to become the premier financial technology layer for the burgeoning digital economy across the MENA region. As Maher articulates, their vision is straightforward: if a business operates globally, its banking infrastructure should similarly be borderless and frictionless. With Sorbet for Business, this compelling vision is swiftly becoming a reality.