The launch of Hyperliquid’s stablecoin has ignited a fierce governance battle among various contenders vying for the opportunity to issue the token. With at least eight organizations submitting proposals, including well-known players like Paxos, Ethena, Agora, and OpenEden, the competition is intense.
Validators on the Hyperliquid network will ultimately determine the winner, but speculators are already placing their bets on the outcome on platforms like Polymarket. One standout contender, Native Markets, has emerged as the frontrunner according to Polymarket odds, with a 90% chance of winning the validator vote.
Native Markets, led by investor Max Fiege, has proposed a hybrid reserve model involving BlackRock for off-chain assets and Superstate using Bridge for on-chain reserves. The firm has also outlined plans to split yield from reserve assets for HYPE token buybacks and USDH expansion.
While Native Markets’ proposal has generated interest and skepticism, rival contenders like Paxos, Ethena, and Agora are also gaining momentum with revised plans and strategic partnerships. For instance, Paxos announced a partnership with PayPal to integrate USDH into PayPal and Venmo products, listing HYPE on PayPal’s ramps, and providing incentives for the Hyperliquid ecosystem.
As the governance battle continues to unfold, the Hyperliquid community is closely evaluating each proposal to determine the best long-term option for the decentralized exchange. With strong contenders and innovative proposals on the table, the competition for USDH issuance remains fierce.
