Ethena submitted a proposal on Tuesday to be the issuer of Hyperliquid’s upcoming stablecoin, USDH, offering a plan that centers on Ethena’s own USDtb token. USDtb is issued via federally chartered bank Anchorage Digital and, per Ethena, is fully backed by BUIDL — a tokenized money market fund managed by BlackRock and Securitize.
The proposal highlights institutional-grade cash management and on-chain liquidity as key selling points. In the filing Ethena quoted Robert Mitchnick, BlackRock’s head of digital assets, to underline the arrangement’s backing and operational readiness.
Crucially, Ethena pledged that 95% of net revenue from USDH reserves would flow back to the Hyperliquid ecosystem if the proposal is adopted. Ethena also offered to cover the technical and operational costs of migrating existing USDC trading pairs on Hyperliquid to USDH to support a smoother transition and faster adoption.
The bid arrives amid a crowded race for Hyperliquid’s issuance mandate. The exchange recorded nearly $400 billion in perpetuals trading volume last month, making USDH a highly attractive asset for liquidity and treasury providers. Competitors in the bidding include Paxos, Sky (formerly MakerDAO), Frax, Agora and Native Markets. Validators are scheduled to vote on proposals on September 14.
Why it matters: If selected, Ethena’s offer could bring a big institutional cash vehicle on-chain for fast-moving perpetual markets and funnel most of the stablecoin’s revenue back into Hyperliquid’s community. But adoption is not guaranteed — validators will decide, and market participants should weigh counteroffers, migration risks and any regulatory considerations tied to custodial and money-market backers.
Source: Ethena proposal (Mirror). Read the original coverage for full details.
