- Hyperliquid has opened a governance vote to award the reserved ticker USDH to a stablecoin issuer that is “Hyperliquid-first, aligned, compliant, and natively minted”
- The vote is fully on-chain with validator staking power; proposals were due September 10, validator declarations by September 11, and the final vote is set for September 14 at 10:00 UTC
- Major stablecoin issuers are in the mix, including Paxos, Frax Finance, Agora, Ethena Labs, Native Markets, Sky, and others
Hyperliquid has opened a governance vote to award the reserved ticker USDH to a stablecoin issuer that is “Hyperliquid-first, aligned, compliant, and natively minted.” This process means that multiple teams are contending for the right to build a stablecoin under that specific name, and network validators will vote to select the winning proposal.
The vote is fully on-chain with validator staking power; proposals were due September 10, validator declarations by September 11, and the final vote is set for September 14 at 10:00 UTC.
Major Stablecoin Issuers in Contention
Additionally, major stablecoin issuers are in the mix, including Paxos, Frax Finance, Agora, Ethena Labs, Native Markets, Sky, and others who have submitted proposals. Apart from well-known players, the list is also composed of some newer entrants to the market.
Hyperliquid currently depends heavily on bridged USDC for most of its stablecoin liquidity and collateral. That means a lot of value (such as yield or fees) flows to external parties rather than staying inside the Hyperliquid ecosystem. With USDH, the idea is to keep more of that money and value inside its ecosystem.
Related: Paxos, PayPal Partner on USDH V2 Proposal With $20M Incentives for Hyperliquid
There is also a security and censorship risk in relying on bridged assets and third‐party issuers. A native stablecoin could reduce those risks, assuming strong governance, proof of reserves, and transparency.
HYPE Token Surges to New All-Time High
Hyperliquid’s native token, HYPE, has hit a new all-time high of approximately $55. This happened as the new USDH proposals came out, showing that the news played a big part in boosting both market sentiment and the token’s value.
Considering that the list of teams involved in the vote is substantial, some concerns have been raised. For instance, Hyperstable (an existing stablecoin protocol on Hyperliquid) feels the process may favor new teams compared to those who tried earlier, and some feel the time for proposal review has been very short.
Still, this represents a relatively rare case of a crypto project letting its community and governing body choose who issues a stablecoin ticker. The process raises important questions about decentralization, the extent of governance power, and which entities can best align with Hyperliquid’s core values.
That said, stablecoins remain a big part of DeFi revenue models. As such, capturing stablecoin issuance and associated yield or fees can be very valuable if done properly.
Related: The Most Profitable Company in Crypto? Hyperliquid Makes $102M Per Employee
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