V3 Research
Native Markets Leads Hyperliquid’s USDH Issuer Vote
Stablecoin Insider
Native Markets leads six major bidders at 65% odds competing for Hyperliquid's USDH stablecoin issuance rights worth $220M annual yield ahead of September 14 validator vote.
Ainvest
Several institutions, including Paxos and Frax, are bidding for the issuance rights of Hyperliquid's USDH stablecoin. Paxos proposed compliance with MiCA and GENIUS acts, native deployment on HyperEVM and HyperCore, and using 95% of interest income for HYPE token buyback.
MEXC
The race for Hyperliquid’s USDH issuance rights represents a pivotal moment in the stablecoin market. The partnership between PayPal and Paxos, with its ambitious incentives and integration plans, sets a high bar for the competition.
Coinotag
On-chain vote this Sunday will decide the USDH issuer. Native Markets currently leads while Ethena, Paxos, Sky, Frax, and Agora submit competing GENIUS-compliant proposals. Hyperliquid holds ~$5.84B in stablecoins; a native USDH could capture yield and routing advantages for the network.

Native Markets Favored to Secure Hyperliquid’s USDH Issuance Mandate

Native Markets is presently the odds-on favorite to secure Hyperliquid’s USDH issuance mandate, leading both prediction markets and preliminary validator votes. However, the final on-chain decision could still swing if rival proposals gain last-minute support 191011.

Current Standings & Key Drivers

  • Market signals: Polymarket gives Native Markets a 65-84% probability, and early validator tallies show it in front 191011.
  • Competitive field: Paxos, Ethena, Sky, Frax, Agora, and others have all filed GENIUS-compliant bids ahead of Sunday’s vote 24622.
  • Community sentiment: Critics worry Native Markets’ Stripe linkage may centralize control, while Ethena touts a “guardian” validator set to ease those fears 12256.
  • Economic sweeteners: Paxos, Ethena, and Sky promise to recycle 95%+ of reserve yield back to users via HYPE buybacks or direct incentives, influencing voter calculus 1415622.

Why Native Markets Leads

  1. Early momentum: It gathered validator backing first and has maintained a polling edge throughout the week 910.
  2. Simplicity: Its proposal avoids complex new collateral structures, appealing to risk-averse validators focused on execution speed 14.
  3. Liquidity routing: As Hyperliquid’s key market-maker, Native Markets can immediately plug USDH into existing perps order books, boosting trading depth from day one 1011.

Money-Making Opportunities Around the Vote

  1. Prediction markets: Traders can speculate on the outcome via Polymarket odds that still price non-zero chances for Paxos or Ethena upsets 1011.
  2. HYPE token: Proposals redirect up to 95% of USDH reserve interest into HYPE buybacks; accumulating HYPE ahead of a Paxos or Ethena win offers asymmetric upside, while a Native Markets victory poses less buyback flow but tighter launch timelines 141543.
  3. Liquidity mining: Winning issuer pledges hefty incentives—Paxos (reserve reinvestment until $1B TVL) and Ethena ($150M program) could translate into high APR pools for early USDH depositors 131436.
  4. Arbitrage: USDH will be mint-redeemable at US$1; traders can exploit peg deviations similar to Hoard and Hubble mechanisms once live 2829.
  5. Validator staking & gas auctions: Teams must bid for deployment gas; validators that back the winner may earn extra fees and delegated stake rewards 314.

Risks & Catalysts

  • Governance backlash: This could still unseat Native Markets if concerns over centralization intensify 1225.
  • Regulatory clarity: MiCA alignment in Paxos’ bid adds long-term legitimacy that may sway neutral voters late in the process 213.
  • Final vote result: Expected Sunday night, will trigger rapid market repricing of HYPE and related governance tokens.
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5 hours ago