The perpetuals exchange announced plans for a Hyperliquid-first, compliant USD stablecoin and reserved the USDH ticker for this purpose.
Stablecoin News
Hyperliquid has sparked intense competition among stablecoin issuers seeking to launch USDH, the platform's native stablecoin. Paxos, Frax Finance, Agora, and Native Markets have submitted proposals, with the winner to be selected through validator voting.
The perpetuals exchange announced plans for a Hyperliquid-first, compliant USD stablecoin and reserved the USDH ticker for this purpose. Proposals must be submitted by Sept. 10, with voting scheduled for Sept. 14.
Hyperliquid currently holds nearly $5.5 billion in $USDC deposits, representing approximately 7.5% of that stablecoin's circulating supply. The platform leads competitors in trade volume and maintains a decentralized approach, having avoided venture capital funding.
Paxos Labs submitted a proposal featuring MiCA and GENIUS Act compliance, with 95% of interest directed toward $HYPE buybacks. The entity would redistribute tokens to ecosystem initiatives, partners, and users while offering zero-fee transitions from USDC to USDH.
Frax Finance proposed backing USDH 1:1 with frxUSD, which derives support from BlackRock's yield-bearing BUIDL treasury fund. Under this community-first approach, 100% of underlying Treasury yield would flow programmatically to Hyperliquid users with zero take rate from Frax.
Agora formed a coalition promising 100% net revenue sharing with Hyperliquid through their institutional stablecoin infrastructure. The proposal includes Rain's global card coverage and LayerZero's interoperability, with revenue directed to the platform's Assistance Fund or HYPE token buybacks.
Native Markets, featuring former Uniswap Labs President MC Lader, submitted the first proposal with Bridge integration. The team promised meaningful revenue sharing with the Assistance Fund, though exact percentages weren't disclosed in their submission.
Ethena Labs hinted at a potential USDH bid through social media, though no formal proposal has been submitted. The Hyperliquid Foundation will abstain from voting, and the platform confirmed USDH won't be the exclusive stablecoin on their blockchain.
This article contains links to third-party websites or other content for information purposes only (“Third-Party Sites”). The Third-Party Sites are not under the control of CoinMarketCap, and CoinMarketCap is not responsible for the content of any Third-Party Site, including without limitation any link contained in a Third-Party Site, or any changes or updates to a Third-Party Site. CoinMarketCap is providing these links to you only as a convenience, and the inclusion of any link does not imply endorsement, approval or recommendation by CoinMarketCap of the site or any association with its operators. This article is intended to be used and must be used for informational purposes only. It is important to do your own research and analysis before making any material decisions related to any of the products or services described. This article is not intended as, and shall not be constructed as, financial advice. The views and opinions expressed in this article are the author's [company's] own and do not necessarily reflect those of CoinMarketCap.
