Tether backs Dreamcash for USDT0 perpetuals on Hyperliquid

What Tether’s investment in Supreme Liquid Labs (Dreamcash) changes on Hyperliquid

As reported by The Block, Tether has made a strategic investment in Supreme Liquid Labs, parent of Dreamcash, to support the launch of USDT0‑collateralized perpetuals on Hyperliquid via HIP‑3. The report also cites a US$200,000‑per‑week incentive for Dreamcash’s CASH markets and names Selini Capital as the primary liquidity provider across RWA perps such as Tesla, Nvidia, gold, and silver.

The change connects a large base of USDT users to Hyperliquid’s markets through Dreamcash’s frontend. In practice, it concentrates incentives and professional liquidity to deepen order books and reduce early slippage.

Why USDT0-collateralized perpetuals on Hyperliquid matter for access

USDT0‑collateralized perpetuals matter because they reduce on‑ramp friction for traders who already hold USDT. Instead of re‑collateralizing, users can engage Dreamcash to route access to Hyperliquid perps.

Dreamcash has framed the initiative as a removal of long‑standing access barriers for USDT holders. “until now there has been no way for the millions of traders holding USDT to access Hyperliquid markets directly,” said Dreamcash, as reported by Coinlaw.io.

In effect, USDT0 functions as the collateral interface for these markets. Specific custody, bridging, and settlement mechanics depend on Dreamcash’s implementation and Hyperliquid’s perps engine.

In the near term, Dreamcash’s CASH markets are expected to concentrate volume where incentives flow. Weekly distributions are designed to reward trading share, while Selini’s inventory and quoting should tighten spreads.

AInvest News characterizes the move as a direct liquidity play and flags reliance on incentives as a sustainability risk. The analysis also notes higher volatility in assets like precious metals and high‑beta equities.

How USDT0 differs from standard USDT on Hyperliquid

Custody, bridging, fees, and settlement basics

USDT0 is a collateral representation tailored for Hyperliquid’s builder‑deployed markets, distinct from standard USDT on common networks. Access typically involves bridging through Dreamcash and collateralizing positions within Hyperliquid’s perps framework.

Trading fees and funding payments follow the exchange’s perpetuals conventions and accrue against USDT0 balances. Settlement occurs within the Hyperliquid environment; external stablecoin transfers require the supported bridge.

Collateral stability and proof-of-reserves considerations

Collateral risk hinges on the stability of USDT and any bridging wrappers that map to USDT0. Standard diligence emphasizes transparent reserves reporting and operational clarity around custody, issuance, and redemption mechanisms.

Based on data from TRM Labs, USDT has featured prominently in illicit finance cases, underscoring why collateral acceptance frameworks and monitoring controls remain material for venues that admit new stablecoin types. These considerations are relevant whenever new collateral formats like USDT0 are introduced.

HIP-3 builder-deployed markets: decentralization and collateral flexibility

How HIP-3 enables third-party markets and collateral types

HIP‑3 lets external builders deploy perpetual markets on Hyperliquid. It supports custom collateral types, such as usdt0, alongside venue‑defined risk parameters.

Decentralization, market structure, and risk responsibilities

Decentralization expands surface area for innovation and risk. Builders and liquidity providers assume listing, parameter, and liquidity duties; users bear leverage, liquidation, and collateral‑bridge risks.