Competitors in the stablecoin market intensify battle as they vie to launch Hyperliquid's USDH

In the world of digital currencies, the Hyperliquid community is currently abuzz with exciting developments as they consider proposals for a new U.S. dollar-pegged stablecoin named USDH.

Several prominent players have thrown their hats into the ring, including Frax Finance, Agora, Native Markets, and Paxos. Among these, it was Native Markets that secured approximately 70% of the validator votes, with Paxos garnering 20% and Ethena 3.2%.

Agora's founder, Nick van Eck, suggested a coalition-based infrastructure for USDH, stating it as the "obvious choice." Agora has also committed to sharing 100% of the revenue earned from USDH to fund HYPE buybacks. The coalition partners for Agora include Rain, LayerZero, EtherFi, MoonPay, and Centrifuge.

Paxos, on the other hand, proposed spending 95% of the interest earned from USDH to buy back Hyperliquid's native token HYPE. They also mentioned plans to obtain HYPE holdings to ensure community alignment. In addition, Paxos stated they would seek MiCA and GENIUS compliance for the USDH stablecoin.

Ryan Watkins, founder of Syncracy Capital, commented that the most important question for the Hyperliquid community isn't about institutions vs natives, but about alignment and who will best steward USDH. Bhau Kotecha, cofounder of Paxos, echoed this sentiment, mentioning their plans to obtain HYPE holdings to ensure community alignment.

The Hyperliquid community will assign the USDH ticker via an onchain validator vote that will take place between 10:00 and 11:00 UTC on Sept. 14.

As the community deliberates on these proposals, Nick van Eck expressed caution against Native Markets' proposal to use Stripe's Bridge as USDH's issuer due to Stripe's newly announced plans for a layer 1 blockchain named Tempo.

Several new players are expected to enter the picture in the coming days for the USDH stablecoin. To stay updated on these developments, subscribing to the Unchained Daily newsletter provides these updates for free in your email.

Indeed, exciting times are ahead for Hyperliquid.

Competitors in the stablecoin market intensify battle as they vie to launch Hyperliquid's USDH