Ethena Proposes USDH Stablecoin Backed by BlackRock’s BUIDL

Ethena Labs has submitted a formal proposal to manage Hyperliquid’s USDH stablecoin, positioning itself as a frontrunner in shaping the protocol’s stablecoin infrastructure. The bid hinges on institutional-grade collateralization, with USDH backed by USDtb reserves linked to BlackRock’s BUIDL tokenized fund. This MOVE signals a convergence of traditional finance and decentralized markets.

The proposal outlines a 100% collateralization model using USDtb, a stablecoin fully backed by BlackRock’s BUIDL via Securitize. Ethena emphasizes this structure’s security, transparency, and institutional legitimacy. Robert Mitchnick, BlackRock’s head of digital assets, endorsed the integration, noting its potential to bridge institutional capital with Hyperliquid’s DeFi ecosystem.

A standout feature is Ethena’s revenue-sharing model, pledging 95% of net reserve revenues to the Hyperliquid community through HYPE tokens. This aligns incentives and underscores the project’s commitment to decentralized governance.