Crypto trading platform Hyperliquid is preparing to launch its own stablecoin USDH and has invited companies to compete for its issuance.
Paxos Proposal: Zero-Fee Swap
Paxos, a well-known stablecoin issuer, proposes to manage USDH through its new Paxos Labs team. Their initiative promises strict compliance with regulations and a fee-free transition from USDC to USDH, along with a 95% return of interest earnings to Hyperliquid.
Frax Proposal: Yield for Users
Frax pitches USDH as a yield-bearing stablecoin linked to its existing frxUSD, backed by a BlackRock fund. They promise that 100% of treasury yields will go to Hyperliquid users, potentially amounting to about $220 million annually.
Agora Proposal and Other Contenders
Agora, which recently raised $50 million, submitted a bid for USDH, promising to direct 100% of net revenue to Hyperliquid. The Native Markets team formed within Hyperliquid aims to issue USDH focusing on security and accessibility.
The validator vote on September 14, 2025, will determine which of the candidates will earn the right to issue the new USDH stablecoin. The competition between Paxos, Frax, Agora, and Native Markets promises interesting outcomes.
