Hyperliquid, the decentralized cryptocurrency exchange, has announced plans to launch its own stablecoin USDH and commence voting on this topic.
Announcement of USDH Stablecoin
Decentralized cryptocurrency exchange Hyperliquid (HYPE) has announced plans to launch its own stablecoin USDH. As part of this process, a vote will be held for participants to select the project that has the right to issue the stablecoin. Hyperliquid will provide the branding and the USDH token, while the team selected through the vote will be responsible for its issuance and functions.
Ethena Labs Withdraws Bid
As anticipation for the USDH stablecoin continues, the team behind Ethena (ENA), which is working on the USDe synthetic dollar protocol, has announced the withdrawal of its bid to issue USDH. Ethena Labs founder Guy Young stated that community concerns raised regarding Ethena’s lack of specialization for Hyperliquid and their ambitions for multiple products led to the proposal's withdrawal.
Prospects of Competing Teams
Following Ethena’s withdrawal, the bidding process has shifted. Prediction markets on Polymarket give Native Markets a 92% chance of winning, with Paxos in second place at around 7% at the time of writing. Ethena’s withdrawal not only narrowed down the chances for Native Markets but also highlighted the advantages local projects have in decentralized governance processes.
The dynamics of the bidding process for the USDH stablecoin continue to evolve, and with new proposals from local teams, the situation is becoming increasingly competitive.
