Lead: Who, what, when, where, why, how
BlockAI — Multiple top crypto projects are racing to issue the Hyperliquid USDH stablecoin. Hyperliquid validators will vote on competing Stablecoin issuer proposals that set reserve rules, payment rails, and yield sharing. The on-chain decision is underway and will shape governance voting and ecosystem incentives. Proposals promise GENIUS Act compliance, MiCA regulation alignment, LayerZero multichain security, and revenue recycling to support HYPE token buybacks.
USDH stablecoin contenders
Native Markets, Ethena (with BlackRock ties), Paxos, Sky (formerly MakerDAO), Agora, and Frax Finance all submitted plans to manage the Hyperliquid USDH stablecoin. Each proposal differs on collateral types and institutional backing for the Hyperliquid USDH stablecoin. Some suggest government securities, others a mix of USD-pegged assets and crypto collateral. Validators will weigh regulatory readiness, reserve transparency, and the potential for on-chain innovation.
Stablecoin issuer proposals explained
Proposals vary from institution-friendly custody and compliance to fully on-chain governance models for the Hyperliquid USDH stablecoin. Several teams emphasize compliance frameworks tied to the GENIUS Act compliance and MiCA regulation for cross-border clarity. Other proposals focus on fast fiat rails like SWIFT, ACH, and Stripe integrations, aiming to make the Hyperliquid USDH stablecoin usable off-ramp for global users.
Governance voting process
Hyperliquid’s on-chain validators will decide under the network’s governance voting process who issues and manages the Hyperliquid USDH stablecoin. Voting will consider Reserve management and yield sharing plans, security via LayerZero multichain mechanisms, and revenue recycling to fund ecosystem growth. The process is designed to balance decentralization with institutional assurance, keeping the Hyperliquid USDH stablecoin attractive to traders and custodians.
Reserve management strategies
Reserve management and yield sharing are central to proposals for the Hyperliquid USDH stablecoin. Some teams propose splitting yield between growth partnerships and buyback funds, while others prefer a conservative reserve in high-quality government securities. The outcome will affect liquidity, peg stability, and HYPE token economics tied to the Hyperliquid USDH stablecoin.
LayerZero multichain security
Proposals point to LayerZero multichain tech to secure cross-chain transfers and reduce settlement risk for the Hyperliquid USDH stablecoin. Multichain support is key for liquidity across L1s and L2s, and for integrating traditional payment rails. A robust LayerZero stack can help validators trust multichain finality when backing the Hyperliquid USDH stablecoin.
How validators decide
On-chain validators will score each plan on compliance, reserve transparency, yield policy, and technical risk. Native Markets and Ethena are often named front-runners, while Paxos, Sky (MakerDAO), Agora, and Frax Finance bring different strengths to the table. The final vote will determine which issuer model governs the Hyperliquid USDH stablecoin and how the token drives ecosystem adoption.
Frequently asked questions about Hyperliquid USDH stablecoin (FAQ)
What is the Hyperliquid USDH stablecoin?
The Hyperliquid USDH stablecoin is a proposed multichain USD-pegged token to be issued and managed under Hyperliquid validator governance.
Who can issue the USDH stablecoin?
Candidates include Native Markets, Ethena, Paxos, Sky (MakerDAO), Agora, and Frax Finance, among others submitting Stablecoin issuer proposals.
How will governance voting work?
Hyperliquid on-chain validators will vote based on criteria like GENIUS Act compliance, MiCA regulation alignment, reserve management and yield sharing, and LayerZero multichain security.
Will the USDH stablecoin be compliant?
Proposals emphasize GENIUS Act compliance and MiCA regulation alignment as part of their risk frameworks.
Sources to this article
defidonkey.com (2025) “USDH stablecoin on Hyperliquid ties to BlackRock-backed USDtb reserve”, Available at: https://defidonkey.com/en/defi-news/usdh-stablecoin-on-hyperliquid-blackrock-usdtb-reserve (Accessed: 10 September 2025).
defidonkey.com (2025) “Hyperliquid USDH stablecoin proposals send HYPE to new all-time high”, Available at: https://defidonkey.com/en/defi-news/hyperliquid-usdh-stablecoin-proposals (Accessed: 10 September 2025).
