Ethena Labs has positioned itself as a key contender in the race to issue Hyperliquid’s new native stablecoin, USDH, aiming to replace the $5.5 billion in USDC deposits currently utilized on the decentralized exchange. This strategic move by Hyperliquid seeks to introduce its own primary settlement currency, presenting a significant opportunity for the chosen issuer to capitalize on Hyperliquid’s substantial revenue generation and impressive trading volumes.
Ethena's Ambitious Proposal for USDH
Ethena’s proposal outlines a robust backing mechanism for USDH, stipulating that the stablecoin will be entirely collateralized by USDtb, a stablecoin itself backed by BlackRock’s BUIDL fund. This institutional-grade support is further solidified by a partnership with Anchorage Digital. A defining feature of Ethena’s bid is its commitment to the Hyperliquid community: 95% of the net revenue generated from USDH reserves will be directly reinvested into the ecosystem through HYPE token purchases and broader development initiatives, fostering deep community alignment and value creation.
A Differentiated Approach and Ecosystem Benefits
Ethena distinguishes its offering through a multifaceted strategy focused on enhanced security, decentralized governance, and expansive ecosystem development. Beyond standard stablecoin issuance, the proposal includes the establishment of an elected guardian network comprising Hyperliquid validators. This innovative security framework aims to decentralize oversight, thereby removing single-issuer control over USDH’s security management. Furthermore, Ethena plans to launch hUSDe, a Hyperliquid-native version of its synthetic dollar product, and has pledged $75 million in incentives to spur HIP-3 market development. Strategic partnerships, such as with Securitize for deploying tokenized real-world assets on HyperEVM, underscore Ethena's commitment to diversifying Hyperliquid's offerings and leveraging its extensive experience managing over $23 billion in tokenized dollar assets to support the platform’s growth.
