Decentralized alternate and layer-1 chain Hyperliquid’s plan to launch a proprietary stablecoin, USDH, has changed into one of the crucial contentious governance battles of latest years in crypto.
At stake is management of a dollar-pegged token that would exchange the $5.5 billion of USDC, which presently represents 95% of the platform’s stablecoin provide, and generate a whole bunch of hundreds of thousands in income from yields on U.S. Treasuries. The validator vote on Sept. 14 will resolve who points USDH.
The competition has attracted heavyweight bidders, together with Paxos, Frax in addition to a coalition involving Agora and MoonPay, however the fiercest debate is over a proposal tied to Stripe’s Bridge platform.
Some members of the neighborhood are warning that handing management of the alternate’s financial layer to Stripe, which is constructing its personal blockchain known as Tempo and already controls pockets infrastructure by its Privy acquisition, would quantity to ceding financial sovereignty to a competitor.
Proposal: Agora stablecoin infrastructure to energy USDH with a coalition of best-in-class suppliers.
Introduction
If Hyperliquid relinquishes their canonical stablecoin to Stripe, a vertically built-in issuer with clear conflicts, what are all of us even doing?Abstract
-…— Nick van Eck (@Nick_van_Eck) September 7, 2025
“If Hyperliquid relinquishes their canonical stablecoin to Stripe, a vertically built-in issuer with clear conflicts, what are we even doing?” Nick van Eck, CEO and co-founder of Agora, which has a proposal in entrance of voters, wrote.
In asserting its participation within the Agora coalition, MoonPay President Keith Grossman careworn that his fee processor holds extra licenses and verified customers than Stripe or Bridge, saying “USDH deserves scale, credibility and alignment – not BS seize.”
Crowded discipline
Paxos has pitched 95% of reserve earnings into HYPE token buybacks, leaning on its decade-long observe file as a regulated issuer. Frax provided a “community-first” mannequin, passing by 100% of Treasury yield to customers with zero take.
Agora’s bid emphasised neutrality and alignment, promising 100% of internet income for HYPE buybacks or Hyperliquid’s Help Fund.
With Ethena hinting it might enter the race, the lineup of bidders might develop, including one other layer of complexity to an already crowded discipline.
Every proposal affords a special imaginative and prescient for the way USDH ought to operate: From Paxos’ regulatory-first strategy to Frax’s user-yield mannequin to Agora’s Hyper-native coalition backed by institutional custodians and consumer-facing fee rails.
Hyperliquid dominates the DeFi derivatives market, with almost an 80% market share. Given the expansion of the Hyperliquid ecosystem, the correct to challenge its native stablecoin could be extremely profitable for whoever is awarded the contract.
Hyperliquid set Sept. 10 because the deadline for proposals — extra are anticipated within the subsequent 48 hours — and Sept. 14 because the date for the validator vote. The Hyperliquid Basis additionally mentioned that it’ll “successfully abstain,” leaving the choice to validators.
