Hyperliquid: The Biggest Crypto Projects Battling for the USDH Stablecoin

Core Insights - Hyperliquid is experiencing significant interest from major crypto companies competing to launch the USDH stablecoin, leading to an on-chain vote by stakeholders [1][6] - Major contenders include Paxos, Sky, Frax Finance, and Ethena, with Native Markets currently positioned as the frontrunner [2] - Hyperliquid operates as a decentralized exchange on its own layer-1 network, holding approximately $5.84 billion in stablecoins, with USDC making up 94.9% of this total [3] Company and Industry Overview - Hyperliquid aims to create its own stablecoin to compete with established players like Circle's USDC and Tether's USDT, seeking to capture the lucrative yields generated by these stablecoins [4] - The Hyperliquid Foundation emphasizes that the USDH stablecoin must align with Hyperliquid's ecosystem, with proposals focusing on revenue reinvestment [5] - The eventual issuer of the USDH stablecoin is expected to gain substantial support from the Hyperliquid community, which is crucial for the token's adoption [6] Contenders for USDH Stablecoin - Native Markets is specifically established to develop the USDH stablecoin, having communicated its intentions to Hyperliquid Labs months in advance [7] - Native Markets plans to ensure compliance with the GENIUS Act, a recent U.S. legislation on stablecoins, and intends to utilize Bridge, a platform acquired by Stripe, for managing reserves [8]