Inside the Hyperliquid stablecoin race: The companies vying for USDH

Hyperliquid’s first stablecoin vote has drawn bids from Paxos, Frax, Sky, Agora and newcomer Native Markets, with billions in trading volume and stablecoin flows on the line.

One week after opening a contest to decide the issuer of its first native stablecoin, USDH, Hyperliquid is preparing for a validator vote on Sunday to select the winner in what has quickly become one of the industry’s most closely watched community decisions.

Hyperliquid, a decentralized exchange for perpetual futures that launched its own layer-1 in November 2024, handled $330 billion in trading volume in July with a team of 11 people. USDH will serve as the platform’s first dollar-pegged asset, providing traders with a stable unit of account and collateral option within the Hyperliquid ecosystem.

The vote will decide which company controls the exchange’s canonical stablecoin and gains access to billions in stablecoin flows.

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