Ethena Joins Hyperliquid’s USDH Stablecoin Race with BlackRock Backing

Ethena Labs has entered the competition to become Hyperliquid's native stablecoin issuer with a proposal backed by BlackRock's BUIDL fund and Anchorage Digital. The September 9 submission outlines plans to fully collateralize USDH with USDtb, a stablecoin tied to BlackRock's institutional-grade treasury fund.

The bid stands out through its revenue-sharing model—pledging 95% of net USDH reserve income to Hyperliquid's ecosystem via HYPE token buybacks and development funds. This comes as Hyperliquid prepares to launch its stablecoin in an upcoming network upgrade, targeting the $5.5 billion USDC settlement pool currently dominating its decentralized exchange.

With Hyperliquid generating $1.3 billion in annualized revenue and recording $405.8 billion in August perpetual trading volume, the selection carries significant financial stakes. Ethena's institutional partnerships and proposed validator-based security governance aim to differentiate its approach from competitors.