Paxos, Ethena and Native Markets Could Vie to Issue USDH on Hyperliquid Ahead of Validator Vote

• On-chain vote this Sunday will decide the USDH issuer.

• Native Markets currently leads while Ethena, Paxos, Sky, Frax, and Agora submit competing GENIUS-compliant proposals.

• Hyperliquid holds ~$5.84B in stablecoins; a native USDH could capture yield and routing advantages for the network.

USDH stablecoin: Hyperliquid stakeholders vote this Sunday to select the issuer; read concise issuer comparisons and vote guidance now.

What is the USDH stablecoin and why does it matter to Hyperliquid?

USDH stablecoin is the proposed native stablecoin for the Hyperliquid network, designed to reduce reliance on USDC/USDT and capture on-chain yield for the ecosystem. A native USDH would channel reserve revenue and trading utility back into Hyperliquid, benefiting validators, traders, and protocol growth.

How is the USDH issuer chosen on Hyperliquid?

Hyperliquid validators will state voting intentions and cast a final vote in an on-chain election this Sunday. The Hyperliquid Foundation requires the winner to be “Hyperliquid-first” and “Hyperliquid-aligned,” and proposals are evaluated on reserve design, regulatory compliance, revenue-sharing, and ecosystem support.

Which issuers are competing to launch USDH?

Major issuers and alliances have submitted proposals. Below is a concise, factual comparison of the leading contenders and their core commitments to Hyperliquid.

Who is Native Markets and what does it offer?

Native Markets was founded to build a USDH for Hyperliquid and claims readiness to launch within days. It proposes GENIUS Act compliance, Bridge (Stripe-acquired platform) for reserve management, and a 50/50 split of reserve yield between growth partnerships and an Assistance Fund.

What is Ethena’s proposal and BlackRock backing?

Ethena proposes backing USDH with its USDtb and indirect collateralization from a tokenized money market fund tied to BlackRock’s BUIDL fund. Ethena says 95% of reserve revenue will support the Assistance Fund or buy HYPE, and it pledges to cover costs for migrating trading pairs to USDH.

What does Paxos propose for USDH?

Paxos positions itself as a regulated issuer with global rails (SWIFT, ACH) and claims GENIUS compliance plus MiCA-aligned operations. Paxos proposes using 95% of interest from reserves to buy HYPE and distribute value to applications and validators.

What does Sky (formerly MakerDAO) bring to the race?

Sky proposes a natively multichain USDH powered by LayerZero, a 4.85% return for USDH holders on Hyperliquid, and the deployment of part of its balance sheet into the network. Sky emphasizes security, risk management, and long-term support.

What are Agora and Frax Finance proposing?

Agora proposes a fully controlled issuance with VanEck as asset manager and pledges 100% of net revenue to the Assistance Fund or HYPE buybacks, while urging caution about Bridge/Stripe conflicts. Frax suggests a Frax-led alliance with a regulated U.S. bank and tokenized U.S. treasury backing, returning full treasury yield to Hyperliquid.

How will validators and users participate in the vote?

Validators should state intentions early Sunday; users can stake to validators aligned with their vote. The winning issuer will be announced after the formal on-chain vote closes the same day.

Frequently Asked Questions

Which issuer is the favorite to win the USDH ticker?

Market sentiment currently favors Native Markets, supported by early validator backing, but the final result depends on validator votes and community staking before the Sunday decision.

Will USDH replace USDC on Hyperliquid?

USDH is intended to become the canonical stablecoin for Hyperliquid, but existing liquidity and integrations mean USDC will remain widely used; migration depends on adoption and issuer support.

Key Takeaways

• On-chain decision: Hyperliquid validators will vote Sunday to pick the USDH issuer.
• Multiple strong proposals: Native Markets, Ethena (with BlackRock backing), Paxos, Sky, Frax, and Agora present differing reserve and revenue models.
• Community impact: The winning issuer could redirect stablecoin yield into Hyperliquid, strengthening network economics and staking rewards.

How to vote for USDH on Hyperliquid (short guide)

Follow these steps to align your stake with a validator’s USDH vote:

1. Check validator proposals and public statements on Hyperliquid governance channels.
2. Stake to a validator that has committed to your preferred issuer before voting opens.
3. Monitor the final on-chain tally and adjust stakes in the next governance window if desired.

Conclusion

The USDH issuer race has energized Hyperliquid governance and presented a rare competition among major stablecoin issuers. Validators’ votes this Sunday will determine whether a native USDH channels reserve yield and utility back into the network. Stakeholders should review proposals carefully and align their stakes to influence the outcome.

Notable community lines (plain text):

“Hyperliquid currently loses >$200m a year to firms who treat it as an afterthought at best. I’m co-founding Native Markets to reclaim this value leakage for the ecosystem and to kickstart Hyperliquid’s next chapter.” — max.hl (tweet text)

“We’ve spent the last three days listening to the @HyperliquidX community, absorbed every concern and doubled down. V2 of our proposal is simple: Paxos unlocks Hyperliquid at global scale.” — bhau (tweet text)

“Proposal: Agora stablecoin infrastructure to power USDH with a coalition of best-in-class providers… If Hyperliquid relinquishes their canonical stablecoin to Stripe, a vertically integrated issuer with clear conflicts, what are we all even doing?” — Nick van Eck (tweet text)