Paxos, Frax & Agora Vie for Hyperliquid’s USDH Stablecoin Issuance Rights

Hyperliquid, a crypto trading platform with $5.5 billion in USDC deposits, is launching its own ecosystem-tailored stablecoin, USDH. The project has sparked a competitive bidding war among major stablecoin issuers, with Paxos, FRAX Finance, Agora, and Native Markets submitting formal proposals. Ethena Labs, another heavyweight in the stablecoin space, is expected to join the fray shortly.

The selection process will culminate in a validator vote on September 14, 2025, following a September 10 proposal deadline. Hyperliquid's MOVE aims to reduce reliance on external issuers like Circle while maintaining regulatory compliance. Paxos has emerged as a strong contender, leveraging its new Paxos Labs division to offer zero-fee USDC-to-USDH swaps alongside stringent EU and US compliance guarantees.