Ethena Submits Proposal for Hyperliquid USDH Stablecoin Contract

Ethena Labs has entered the race to issue Hyperliquid's USDH stablecoin, joining five other prominent contenders including Paxos, Sky, Frax, Agora, and Native Markets. The proposal, backed by Ethena's USDtb—a stablecoin collateralized by BlackRock's BUIDL tokenized fund—promises to return 95% of net revenue to Hyperliquid's ecosystem.

Hyperliquid's derivatives exchange, which processed nearly $400 billion in perpetuals trading volume last month, represents a lucrative opportunity for stablecoin providers. Validators are set to vote on the winning bid on September 14, with the outcome likely to influence DeFi's stablecoin landscape.

The competition underscores the growing institutional interest in decentralized finance, as traditional finance giants like BlackRock indirectly participate through tokenized exposure. Ethena's pitch emphasizes its track record with USDe and USDtb, positioning itself as a proven operator in stablecoin scaling.