The issuance rights of the USDH stablecoin under Hyperliquid have attracted competition from multiple institutions, with Paxos, Frax, and others submitting bidding proposals

ChainCatcher news, stablecoin issuers Paxos, Frax Finance, Agora, and others are competing for the issuance rights of the upcoming USDH stablecoin from Hyperliquid. Hyperliquid announced this plan last Friday, stating that the goal is to launch a "dollar stablecoin that prioritizes Hyperliquid, aligns with the Hyperliquid philosophy, and is compliant," and has reserved the USDH token code for this purpose.

Hyperliquid invites teams to submit proposals, with the winner selected through validator voting, gaining the rights to purchase the token code and issue the token. Paxos submitted its USDH bidding proposal yesterday, promising to provide compliance with the MiCA and GENIUS acts, support for native deployment on HyperEVM and HyperCore, and allocate 95% of interest income for HYPE token buybacks, redistributing the repurchased tokens to "ecosystem programs, partners, and users."

Frax proposed a "community-first" proposal, planning to peg USDH to frxUSD at a 1:1 ratio, with frxUSD supported by BlackRock's yield-generating BUIDL on-chain treasury fund. Frax stated, "100% of the underlying treasury yield will be directly distributed to Hyperliquid users through on-chain programmatic means, and Frax will not charge any fees."

Hyperliquid's current stablecoin deposits can yield an annualized return of $220 million. Agora has also formed a joint bidding team for USDH, promising that "100% of net income" will be allocated to Hyperliquid for platform assistance funds or HYPE token buybacks. Ethena Labs has also hinted on the X platform that it may submit a USDH proposal.

Hyperliquid requires companies to submit proposals by September 10 (Wednesday), with voting taking place on September 14 (Sunday). The Hyperliquid Foundation stated that it will "effectively abstain" from participating in the vote.