USDH STABLECOIN CUSTODIAN SCRUTINY

Summary from the TLDR Crypto newsletter

Bridge's reliance on a small regional bank (with a <$2B balance sheet) is a scaling risk for Hyperliquid's planned USDH stablecoin. With $5B already in USDC deposits on Hyperliquid, custodians need GSIB-level infrastructure (e.g., State Street with $49T assets) to support growth. Smaller banks face regulatory limits when deposits expand too quickly, which can halt scaling and damage customer confidence.