Multiple institutions compete for the issuance rights of Hyperliquid's new stablecoin USDH.

Gate News bot message, Hyperliquid plans to launch a new stablecoin USDH, triggering competition among several institutions to bid. Companies such as Paxos, Frax Finance, and Agora have submitted bidding proposals. Paxos promises to provide compliance solutions, supporting HyperEVM and HyperCore deployments, and will use 95% of interest income for HYPE token repurchase. Frax proposed a “community-first” plan, intending to peg USDH to frxUSD at a 1:1 ratio. Agora has formed a joint bidding team, promising to allocate all net income to Hyperliquid.

Hyperliquid requires all companies to submit proposals by September 10, with voting taking place on September 14. The Hyperliquid Foundation stated that it will “effectively abstain” from participating in the vote. Currently, Hyperliquid's stablecoin deposits can yield an annualized return of $220 million, which is one of the reasons institutions are actively competing for it.