A quiet battle is unfolding in the digital corridors of Hyperliquid, one of crypto’s fastest-growing exchanges. It’s a vote, really, but it feels more like a high-stakes poker game. The prize? The right to issue USDH, Hyperliquid’s new native stablecoin (a digital currency pegged to a stable asset, like the US dollar).
- A competitive vote is underway on Hyperliquid to determine the issuer of its new native stablecoin, USDH, with a deadline of September 14.
- Native Markets, backed by Stripe, currently leads the vote, but significant unassigned stake from major validators could shift the outcome.
- The decision has major implications, as the winning issuer will control a significant portion of Hyperliquid’s financial core and potentially redirect substantial Treasury yield.
Early returns show Native Markets, a team aligned with payment giant Stripe, pulling ahead. They’ve snagged 30.8% of the delegated stake so far, with big names like infinitefield.xyz and Alphaticks throwing their weight behind them. It’s a strong start, but the game is far from over.
I’ve seen plenty of these contests over the years. They often begin with a clear frontrunner, only to see the tide turn as more players join the fray. This one, with its September 14 deadline, has all the hallmarks of a nail-biter.
The Contenders and Their Promises
Native Markets isn’t the only player at the table. Paxos Labs, the New York-regulated issuer behind PayPal’s PYUSD, holds 7.6% of the vote. They’ve got support from B-Harvest and HyBridge, and they’re promising to funnel 95% of their reserve earnings into HYPE buybacks (a way to reduce the supply of the HYPE token, potentially increasing its value).
Ethena has also entered the race, securing 4.5% of the stake. Then there are the others: Agora, Frax, and Sky. These groups have put forward what the market calls “splashy proposals,” yet they haven’t quite captured the imagination of enough voters to gain significant traction.
Frax, for instance, pledged 100% of its yield directly to users. Agora offered the same, plus institutional custodianship (think of it as a bank for digital assets). Sky, a team with roots in MakerDAO, proposed a 4.85% return and a $25 million “Hyperliquid Star” project to kickstart decentralized finance (DeFi) on the chain.
These are all compelling offers, each with its own flavor. But in a vote like this, it’s not just about the numbers. It’s about trust, vision, and sometimes, simply who gets their message out most effectively.
The Unseen Hand of Undecided Voters
Here’s the twist: more than half of the total stake, a hefty 57%, remains unassigned. It’s like a political election where the majority of voters haven’t declared their allegiance. This block includes some of the most influential validators on Hyperliquid, names like Nansen x HypurrCollective, which alone controls over 18% of the stake, and Galaxy Digital.
Their decisions will ultimately determine if Native Markets’ early lead holds up until the September 14 deadline. It’s a waiting game, and every day brings new whispers and shifting alliances.
Native Markets is pitching a Hyperliquid-native stablecoin, built using Stripe’s Bridge infrastructure. They’re sweetening the deal with promises of yield-sharing to the Assistance Fund and those HYPE token buybacks. It sounds good on paper, doesn’t it?
But not everyone is convinced. Nick van Eck, the CEO of Agora, has voiced concerns. He warns that Stripe’s simultaneous push to launch its Tempo blockchain and its control of Privy, a wallet provider, could lead to conflicts of interest. It’s a fair point. In the world of crypto, transparency and avoiding conflicts are always hot topics.
Despite these criticisms, some validators seem to view Stripe’s global payment rails as a significant advantage. It’s a classic dilemma: the promise of efficiency and reach versus the potential for centralized control. Which side will the undecided voters lean towards?
More Than Just Another Token Launch
This isn’t just about picking a new stablecoin. The stakes are much, much higher. Hyperliquid currently holds a staggering $5.5 billion in USDC deposits (USDC is another popular stablecoin). That’s roughly 7.5% of USDC’s entire supply. Think about that for a moment.
If USDH replaces USDC, it means hundreds of millions in annual Treasury yield would be redirected. This isn’t pocket change. This is serious money, and it explains why the proposals are so generous with their yield promises.
Hyperliquid already dominates decentralized perpetuals trading, commanding nearly 80% of that market. The issuer who wins this USDH contract won’t just be minting a new stablecoin. They’ll be embedding themselves into the very financial core of one of crypto’s most dynamic exchanges.
Meanwhile, the broader market shows a mixed picture. Bitcoin (BTC) is trading around $114,053, up a bit in the last 24 hours, suggesting some positive risk sentiment. Ethereum (ETH) is also up, shrugging off a recent mass-slashing event that affected many validators. Gold is holding steady, awaiting U.S. inflation data, while global stock markets like the S&P 500 have seen record highs on hopes of Fed rate cuts.
These wider market movements provide a backdrop, but the Hyperliquid vote is a microcosm of the intense competition and innovation happening within crypto itself. It’s a reminder that even as the big assets move, the real structural shifts often happen in these quieter, more focused battles.
The next few days leading up to September 14 will be telling. Will Native Markets maintain its lead, or will the unassigned stake swing the vote in another direction? The outcome will shape not just Hyperliquid’s future, but perhaps even influence how other major decentralized exchanges consider their own stablecoin strategies.
