Lead: What happened, who’s involved, and why it matters
Ethena yesterday pitched a plan to launch the USDH stablecoin on Hyperliquid, backed indirectly by BlackRock’s tokenized BUIDL fund. The USDH stablecoin on Hyperliquid would use Ethena’s USDtb as an initial reserve asset, with Anchorage Digital issuing USDtb and Securitize supporting tokenized fund infrastructure. Community governance and HYPE token holders would decide adoption steps, while Ethena says revenue will flow back into ecosystem funding. This proposal moves fast on liquidity and institutional backing, and it could reshape how Hyperliquid manages cash and risks.
USDH rollout explained
The USDH stablecoin on Hyperliquid aims to replace or complement USDC and USDT within Hyperliquid’s layer-1 network. Ethena designed USDH to be native to Hyperliquid, with USDtb — a stablecoin issued by Anchorage Digital and 100% backed by BlackRock’s BUIDL fund — providing the initial backing. If approved, Ethena will cover transaction costs to encourage quick on-chain adoption and deeper integration into Hyperliquid’s DEX and trading venues.
Ethena and BlackRock
Ethena is the proposer and the intermediary connecting Hyperliquid to institutional capital. BlackRock’s Head of Digital Assets, Robert Mitchnick, publicly supported the plan, noting that the BUIDL fund’s tokenization can offer institutional-grade liquidity. That makes the USDH stablecoin on Hyperliquid unique: it ties community-driven DeFi mechanics to a tokenized institutional asset, bringing a new model of institutional backing to a growing ecosystem.
Ecosystem funding model
Revenue from USDH would be redirected to support Hyperliquid’s Assistance Fund, validator distributions, and HYPE token purchases. Ethena pledges that at least 95% of reserve earnings will be reinvested into ecosystem funding, creating a circular model where the USDH stablecoin on Hyperliquid helps finance growth and stability. Community members may benefit from increased on-chain liquidity and a more resilient treasury.
Institutional backing details
Anchorage Digital will issue USDtb natively on Hyperliquid’s chain, and Securitize will deploy its tokenization platform for fund servicing. The USDH stablecoin on Hyperliquid would therefore be indirectly supported by BlackRock’s BUIDL fund, offering a regulatory-aware pathway for institutional capital to enter Hyperliquid. That chain of support — BUIDL fund to USDtb to USDH — is central to the proposal’s credibility.
Adoption and governance
Hyperliquid’s validators and HYPE token holders will be key to approving and shaping USDH’s role. Governance votes could set reserve rules, distribution mechanics, and how much revenue goes to the Assistance Fund. The USDH stablecoin on Hyperliquid is pitched as community-first: while institutional partners provide backing, governance remains on-chain to ensure Hyperliquid alignment.
Why it matters now
Hyperliquid launched in early 2023 and has grown into a notable layer-1 network. Demand for a native stablecoin is high as traders and liquidity providers prize predictable on-chain cash. The USDH stablecoin on Hyperliquid could lower friction for traders, improve cash management for DeFi strategies, and offer a new revenue stream for the protocol through reinvested earnings.
Risks and next steps
Regulatory approvals and audit transparency will be essential before USDH can become primary liquidity on Hyperliquid. Stakeholders should watch for legal reviews, smart-contract audits, and clear governance proposals. If approved, Ethena’s plan could roll out USDH with initial USDtb reserves and then expand backing mechanisms as the network scales.
Frequently asked questions about USDH stablecoin on Hyperliquid (FAQ)
What is the USDH stablecoin on Hyperliquid?
USDH stablecoin on Hyperliquid is Ethena’s proposed native stablecoin for the Hyperliquid network, initially backed by USDtb, which is itself backed by BlackRock’s tokenized BUIDL fund.
Who backs USDH?
The proposal ties USDH to BlackRock’s BUIDL fund indirectly via USDtb, with Anchorage Digital issuing USDtb and Securitize providing tokenization services.
How will revenue from USDH be used?
Ethena plans to channel at least 95% of reserve earnings into ecosystem funding, including the Assistance Fund, validator payouts, and HYPE token purchases.
What governance role does Hyperliquid have?
HYPE token holders and validators will vote on adoption, reserve policies, and distribution mechanics that determine USDH’s place in the Hyperliquid ecosystem.
When could USDH launch?
The proposal was presented recently; launch timing depends on governance approval, regulatory clearances, and technical integration across Hyperliquid, Anchorage Digital, and Securitize.
Author
BlockAI reports on crypto markets, DeFi developments, and blockchain governance with a focus on practical implications for traders, builders, and tokenholders.
