Sky Launches USDH Stablecoin With 4.85% Yield and Support

Sky proposes to launch the USDH stablecoin on Hyperliquid with a 4.85% yield offering and a $25 million commitment to support DeFi growth. The scale is striking. Hyperliquid already moves around $378 billion in trades each month, so whoever wins the right to issue USDH gains a direct stake in that flow. Until now, stablecoins like USDC and USDT captured most of that value. Sky wants to change that.

USDH Stablecoin Offers 4.85 Percent Yield

The pitch is simple. Holders of USDH on Hyperliquid earn 4.85% annually, which is well above typical savings yields. Sky also pledges $2.2 billion in redemption liquidity and points to its $8 billion balance sheet as proof of stability. Add in GENIUS Act compliance, and the message is clear. This is designed for a regulated future where platforms cannot afford non-compliant stablecoins.

Sky Pushes DeFi Revenue Return Narrative

Paxos, Frax Finance, Agora, and Native Markets are also in the race. But Sky is framing USDH offer as more than a token. It is about returning revenue to the ecosystem rather than letting it leak to outside issuers. Today Circle earns hundreds of millions annually from deposits on platforms like Hyperliquid. Sky argues that revenue should stay in-house and fuel DeFi growth instead.

This approach lines up with broader market shifts. Stablecoin users jumped from 19.6 million to 30 million over the past year, while supply climbed from $138 billion to $225 billion. Transfer volume doubled to $4.1 trillion. These numbers suggest stablecoins are not just tools for trading anymore. They are becoming infrastructure. Yield-bearing designs like USDH accelerate that shift because they offer both stability and returns.

GENIUS Act Compliance Strengthens USDH Stablecoin

The GENIUS Act forces every issuer to hold one dollar in reserves for every token created, publish reports each month, and operate under federal licenses. Compliance may feel heavy, but it builds trust. In a market where capital moves at scale, trust is what allows institutions to engage. Sky emphasizes its readiness for that framework, which could give it an edge when rules tighten.

USDH Proposal Could Redefine DeFi With Yield Models

This is less about one stablecoin launch and more about the direction of decentralized finance. Platforms no longer want to outsource key infrastructure. They want their own compliant, revenue-generating currencies. If validators approve Sky’s proposal on September 14, USDH could set the template for how DeFi integrates stablecoins that work like regulated financial products but still pay yield to users.