A $USDH sparked stablecoin competition

Written by Yanz

On September 5, 2025, Hyperliquid announced its readiness to launch its native stablecoin, USDH, with a governance lead in its next network upgrade.

The protocol describes USDH as a "hyperliquid-first and compliant" dollar-pegged asset, hoping to replace external stablecoins like USDC and create a self-sufficient DeFi ecosystem.

Unlike traditional stablecoins (such as USDT, USDC), which are issued by centralized entities and monopolize profits, Hyperliquid adopts an innovative decentralized voting mechanism:

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the issuance rights of $USDH stablecoins to the ecological team rather than launching them themselves, integrating a community-driven model into stablecoin issuance.

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the move immediately sparked fierce competition, with Frax and Paxos submitting proposals and Ethena Labs being favored as a possible entrant. This vote, which is expected to end before September 10, may not only reshape...

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