Hyperliquid Abandons Its Own Stablecoin...Ultimately Chooses 'USDT'

▲ Tether (USDT), Dollar (USD)/ChatGPT generated image

Decentralized exchange Hyperliquid (HYPE) has opted to integrate with the large liquidity market by adopting USDT into its portfolio margin system, replacing its proprietary stablecoin USDH.

According to cryptocurrency media outlet U.Today on May 26 (local time), Hyperliquid announced the launch of USDT in its portfolio margin system. USDT, the largest crypto dollar, is currently available for borrowing on the project's testnet, with full mainnet deployment scheduled with the next protocol update.

Experts interpret this move as Hyperliquid effectively ceasing promotion of its own stablecoin USDH and opting to integrate into a market structure centered around USDT and USDC, which have already accumulated billions of dollars in liquidity. Hyperliquid is moving towards adopting liquidity frameworks familiar to large capital rather than insisting on an independent internal stablecoin ecosystem.

Portfolio margin is a structure that combines spot and futures into a single common pool, reducing the need for market participants to directly transfer collateral between different accounts. Profits, losses, and borrowing are calculated based on the entire account, allowing for risk offsetting between positions. This lowers collateral requirements and makes it easier to execute complex strategies like carry trades, which aim to profit from price differences by simultaneously utilizing spot longs and futures shorts.

However, Hyperliquid strictly limits USDT borrowing in the alpha phase to prevent rapid losses. As combining different transaction types can complicate calculation structures and create hidden risks, the project has declared maximum readiness on the testnet. Vulnerabilities in the USDT margin logic are treated as mainnet-level bugs, and the bug bounty program offers up to $1 million for critical discoveries.

This integration comes as the Hyperliquid token maintains around $60 and the exchange has launched a macroeconomic event prediction market under HIP-4. U.Today reported that Hyperliquid is choosing practical evolution as a universal hub to attract global liquidity under terms familiar to large capital, rather than creating an isolated proprietary ecosystem.

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