Hyperliquid’s USDH stablecoin race heats up as Native Markets takes lead amid Paxos’ proposal

Core Insights - Hyperliquid has launched its own stablecoin, USDH, leading to a competitive governance battle among various organizations aiming to issue the token [1][2] - At least eight organizations, including Paxos and Ethena, have submitted proposals to secure the right to issue USDH, indicating significant interest and potential value in the market [2] - Native Markets, a newcomer led by Max Fiege, is currently favored to win the validator vote, with a 90% chance initially, which has since decreased to 84% [4] Proposal Details - Native Markets proposes a hybrid reserve model where off-chain assets are managed by BlackRock and on-chain reserves are held through Superstate using Bridge, a platform owned by Stripe [5] - The proposal includes a commitment to split yield from reserve assets, with half allocated for HYPE token buybacks and the other half for USDH expansion [5] Community Reactions - The proposal from Native Markets has generated mixed reactions, with some community members expressing skepticism about its reliance on Stripe, particularly in light of Stripe's plans for a new layer 1 blockchain called Tempo [6] - Concerns have been raised that Stripe may divert users from Hyperliquid to its own ecosystem, potentially impacting Hyperliquid's long-term viability [6] - Despite skepticism, some industry figures suggest that Native Markets may have had prior knowledge of the request-for-proposals process, allowing for a swift submission [7]