Hyperliquid is at the center of a high‑stakes contest: multiple issuers are competing to claim the USDH ticker and become the network’s canonical stablecoin. The on‑chain vote by Hyperliquid validators is set for Sunday, after a week of proposals from established firms and newcomers.
The winner gains instant distribution to a network that currently holds about $5.84 billion in stablecoins — roughly 94.9% of which is USDC — and accounts for over $1.07 billion in daily trading volume. Hyperliquid wants a token that’s “Hyperliquid‑first” and aligned with its ecosystem; most bidders promise to funnel yield or revenue back to the network.
Front‑runners include:
Native Markets — a new team built specifically to issue a USDH for Hyperliquid. It says it can launch within days, plans to be GENIUS Act‑compliant, and would split reserve yields between growth partnerships and an on‑chain Assistance Fund. Market sentiment currently favors Native Markets, though some community figures have raised concerns about perceived advantages.
Ethena (backed publicly by a BlackRock executive) proposes to back USDH with its USDtb product and route 95% of reserve revenue to the Assistance Fund or HYPE buybacks. Ethena says the token would offer institutional‑grade cash management.
Paxos offers global compliance, fiat on‑ramps via SWIFT/ACH/wires, and plans to use 95% of reserve interest to buy HYPE for validators and apps.
Sky (formerly MakerDAO) proposes a multichain USDH with LayerZero, promises a ~4.85% return to holders on Hyperliquid, and plans to deploy balance sheet support and HYPE purchases.
Agora, Frax and several smaller teams also submitted bids, with disputes focusing on reserve custodians and conflicts of interest — notably the role of Stripe’s Bridge service in some proposals.
Why it matters: whoever issues USDH could redirect significant treasury yield and trading liquidity away from USDC/USDT, reshaping stablecoin flows on Hyperliquid. Risks include centralization, regulatory compliance, and counterparty exposure depending on the chosen issuer.
Source: Decrypt. Read the original coverage for full details.