USDH Power Struggle Ignites Stablecoin “Bidding Wars” Across DeFi: Bloomberg

Core Insights - A competitive bidding war for the issuance of USDH, a new dollar-pegged stablecoin, has emerged on Hyperliquid, indicating a significant shift in the stablecoin industry [1][3] - Native Markets, a startup backed by Stripe, won the contract to issue USDH, leveraging its connections to outbid more established competitors [3][5] - The contest highlights the increasing importance of branding and partnerships in the stablecoin sector, alongside technological capabilities [3] Industry Dynamics - The stablecoin market has transitioned from a community-driven initiative to a competitive landscape dominated by institutions and payment companies seeking revenue from reserves [4] - Major players like Circle and Paxos are adapting their strategies, with Paxos pledging no revenue until USDH surpasses $1 billion in circulation [4][6] - The competition reflects the desperation among stablecoin issuers for market share, as they publicly announce their revenue-sharing offers [6] Competitive Landscape - The bidding involved notable firms such as Paxos, Sky, and Ethena, with Native Markets ultimately securing the contract due to its strategic ties to Stripe's acquisition of Bridge [2][5] - USDC remains the dominant stablecoin on Hyperliquid, with over $5.6 billion in deposits, but the introduction of USDH could alter market dynamics [6] - Regulatory considerations are also influencing the competitive environment, with firms like Paxos and Bridge navigating different licensing frameworks [7]