As of Thursday morning in Hong Kong, validators have begun casting virtual votes in Hyperliquid’s contested stablecoin selection and Stripe-linked Native Markets holds an early lead with 30.8% of delegated stake. The momentum is concentrated: infinitefield.xyz controls about 13.5%, Alphaticks has 5.2%, Paxos Labs sits near 7.6%, and Ethena roughly 4.5%. More than 57% of stake remains unassigned.
Native Markets proposes a Hyperliquid-native USDH minted via Stripe’s Bridge, offering yield-sharing mechanisms to an Assistance Fund and buybacks for Hyperliquid’s HYPE token. Critics — including Agora CEO Nick van Eck — warn Stripe’s broader push into payments and its role with wallet provider Privy could create conflicts, especially as Stripe moves to launch its Tempo blockchain.
The outcome matters because Hyperliquid currently holds about $5.5 billion in USDC deposits — roughly 7.5% of the stablecoin’s supply. Converting that liquidity to USDH would redirect sizable annual Treasury yield. Competing issuers have laid out different economic models: Paxos pledged 95% of reserve earnings to HYPE buybacks; Frax promised 100% of yield to users; Agora offered 100% of net yield plus institutional custodianship; Sky proposed 4.85% returns and a $25 million Hyperliquid bootstrap fund.
Key undecided validators — notably Nansen x HypurrCollective (the single largest validator at over 18%) and Galaxy Digital — hold the swing votes ahead of the Sept. 14 deadline. Whichever issuer wins won’t just mint a token: they’ll become a core provider of liquidity and yield for one of crypto’s fastest-growing exchanges, which accounts for nearly 80% of decentralized perpetuals trading.
Risk note: This vote has governance and concentration risks. A switch in reserves could shift settlement dynamics, centralize custody, and create conflicts of interest that affect market stability. Readers should watch validator disclosures and issuer terms closely.
Source: CoinDesk. Read the original coverage for full details.