Quick Breakdown:
- Ethena has submitted a proposal to issue USDH, Hyperliquid’s native stablecoin, backed by Anchorage and BlackRock’s BUIDL fund.
- The plan emphasizes institutional credibility, community revenue sharing, and a guardian validator network for security.
- Ethena commits $75 million to ecosystem incentives, aiming to scale USDH safely across Hyperliquid’s markets.
Ethena has officially entered the race to issue Hyperliquid’s planned native stablecoin, USDH, presenting a proposal that includes backing from Anchorage Digital Bank and BlackRock’s BUIDL fund. The firm’s governance submission on September 9 highlights a structure that pairs institutional credibility with compliance and scalability, aiming to launch USDH fully collateralized by USDtb, a payment token approved by BlackRock and issued by Anchorage. This move positions Ethena as a key contender alongside rivals such as Sky, Frax, and Agora.
Anchorage, recognized as the first OCC-chartered crypto bank in the United States, will serve as both the issuer and custodian for USDtb, reinforcing the stablecoin’s regulatory and operational foundation. BlackRock’s digital assets division supports the initiative, with Robert Mitchnick endorsing USDtb for institutional-grade cash management and on-chain liquidity. Anchorage CEO Nathan McCauley adds that this partnership will provide Hyperliquid with a sovereign stablecoin to fuel its ecosystem’s growth.
USDH a standout feature for Hyperliquid community
A standout feature of Ethena’s proposal is its commitment to channeling at least 95% of the net revenues from USDH reserves back to the Hyperliquid community. This includes funding for the Assistance Fund and buybacks of the Hyperliquid token (HYPE), with future plans to distribute yield directly to staked validators.
Notably, Lion Group recently reallocated $5M in SOL and SUI into Hyperliquid’s HYPE to strengthen its crypto treasury and BitGo’s new custody solution adding institutional backing to HYPE’s growing adoption.
Security concerns surrounding stablecoin mismanagement and systemic market risks have led Ethena to advocate for governance by an elected guardian network of validators. This network, potentially including LayerZero (ZRO), would have authority to intervene and safeguard the ecosystem in crisis scenarios by freezing or reissuing tokens.
To further bolster ecosystem growth, Ethena pledges $75 million for incentives to expand Hyperliquid’s front-end interfaces and introduce new products like hUSDe, a derivative linked to Ethena’s USDe. With an existing USDe balance sheet surpassing $13 billion, Ethena aims to stabilize liquidity and catapult USDH to a multi-billion dollar supply.
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