> ## Documentation Index
> Fetch the complete documentation index at: https://docs.hamilton.xyz/llms.txt
> Use this file to discover all available pages before exploring further.

# What is USDh

> The token itself: what backs it, how new USDh is made, and why it stays at one dollar.

**USDh is a fully backed token built to hold a value of one US dollar.** It pays no interest. Its only job is to be a stable dollar that moves like any other token.

## At a glance

| | |
| - | - |
| Standard | ERC-20 on Ethereum mainnet |
| Decimals | 6, the same units as USDC |
| Value | Targets one US dollar. This is not guaranteed at every moment |
| Interest | None |
| Backing | Cash in US dollars, US Treasury bills, and stablecoins backed by Treasury bills. See [Reserves](https://docs.hamilton.xyz/trust-and-transparency/reserves-and-backing.md) |
| Issuer | Hamilton Digital Assets Limited (HDA), British Virgin Islands. See [Company structure](https://docs.hamilton.xyz/legal/legal-structure.md) |
| Upgrades | Possible, but only after 48 hours' public notice. The token address never changes. See [Security](https://docs.hamilton.xyz/trust-and-transparency/security-and-audits.md) |
| Contract | [`0xbcFC42391e55484129191eDfcC766a2c6F9eb503`](https://etherscan.io/token/0xbcfc42391e55484129191edfcc766a2c6f9eb503) |

## Who can do what

| | Hold, send, swap | Mint and redeem with HDA |
| - | - | - |
| **Anyone** | Yes, from their own wallet | No. Holders are not customers of HDA |
| **Mint Users** (onboarded businesses) | Yes | Yes, one for one, from one approved wallet |
| **Approved routes** (for example, aggregators) | Yes | Yes, on behalf of their own users |

Mint Users pay in and get paid out in USDC or US dollars by wire. USDT, AUSD, USDS and USDe are planned. Details are on [How it works](https://docs.hamilton.xyz/using-hamilton/minting-and-redeeming-primary-users.md).

## How new USDh is made

New USDh is created in only two ways:

1. **With USDC.** A Mint User sends USDC from its approved wallet. The contract creates the same amount of USDh in the same transaction.
2. **With a wire.** A Mint User wires US dollars. Once the money clears, Hamilton creates the USDh. The contract caps how much can be created this way in any 24 hours.

Redeeming works in reverse: the USDh is destroyed and the dollars or USDC go back out. Supply started at zero, so every USDh in circulation was matched by money that came in.

## Why it stays at one dollar

Mint Users can always trade with Hamilton at exactly one dollar, and that pulls the market price back toward it.

* \*\*If USDh trades at \$0.99,\*\* a Mint User can buy it on the market and redeem it with Hamilton for \$1.00.
* \*\*If USDh trades at \$1.01,\*\* a Mint User can mint it for \$1.00 and sell it on the market.

Either trade pushes the price back toward one dollar. Redemption limits and occasional delays can slow this down for a while. They are set out on [Limits and fees](https://docs.hamilton.xyz/using-hamilton/limits-and-timing.md).

## For technical readers

USDh supports EIP-2612 `permit` (approvals without gas) and EIP-3009 `transferWithAuthorization` (transfers without gas), including from contract wallets through EIP-1271.

The contract can pause all transfers in an emergency, and freeze a single address to comply with sanctions. **It can only freeze. There is no code to take, move or claw back a balance.** A frozen address keeps everything it holds.

USDh runs behind an upgradeable proxy. The address you hold never changes. The code behind it can only be replaced through a change scheduled publicly 48 hours in advance. To check this yourself, see [Verify on-chain](https://docs.hamilton.xyz/trust-and-transparency/check-us-yourself.md).

> [!WARNING]
>
> USDh is not a bank deposit, is not insured, and is not an investment product. Its value is not guaranteed in all circumstances. See [Risks](https://docs.hamilton.xyz/trust-and-transparency/risks.md).

*Last updated: 10 November 2026*


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