Good morning, Asia. In today’s market briefing, we delve into significant developments from the previous week affecting cryptocurrencies and financial trading.
In a noteworthy decision, Hyperliquid’s validator community has officially selected Native Markets to issue USDH, concluding a competitive week that saw proposals from several major players, including Paxos, Frax, and Agora. Native Markets, established by key industry figures such as former Uniswap Labs president MC Lader, researcher Anish Agnihotri, and early Hyperliquid supporter Max Fiege, has announced plans to roll out USDH “within days.” Fiege confirmed the selection via a post on social media platform X, thanking HYPE stakers and network validators for their contributions to the proposal review process.
According to data from onchain trackers, Native Markets’ proposal garnered approximately 70% of validator votes, far outpacing Paxos, which received around 20%, and Ethena, which closed with 3.2%. The introduction of USDH will begin with a phased approach, starting with limited mints and redemptions, progressing to a USDH/USDC spot pair before the implementation of full liquidity.
Designed to establish itself as a competitor to Circle’s USDC—which currently leads Hyperliquid with nearly $6 billion in deposits—USDH’s rollout aims to enhance the existing stablecoin landscape. While USDC and other stablecoins will continue to be supported provided they align with liquidity and HYPE staking requirements, most competing proposals emphasized returns to the ecosystem through innovative yield structures. In contrast, Native Markets highlighted its focus on credibility, trading experience, and alignment with validators.
Shifting gears to market movements, Bitcoin (BTC) has recently reclaimed the critical $115,000 mark, buoyed by fresh inflows into ETFs, positive U.S. inflation data, and an optimistic outlook for potential interest rate cuts. Despite this upward shift, resistance is anticipated around the $116,000 level, based on insights from CoinDesk’s market analysis tools.
Ethereum (ETH) is also experiencing bullish momentum, trading above $4,600, thanks largely to strong inflows into exchange-traded funds. Meanwhile, gold prices remain near record highs, driven by traders’ expectations of a weaker dollar in light of anticipated Federal Reserve rate cuts.
In other crypto news, Pakistan’s regulatory authorities are taking proactive steps by inviting crypto firms to obtain licenses enabling them to serve the nation’s estimated 40 million local users. Additionally, concerns have emerged regarding the IRS’s expanding surveillance measures on crypto investors, providing further context to the evolving regulatory landscape. In Massachusetts, allegations have surfaced against Kalshi, suggesting potential violations of sports gambling laws, which have been reported by various outlets.
Stay tuned for further updates as the markets continue to evolve.
