CMC News

#Native Markets Leads Race for #Hyperliquid's $5.9B Stablecoin

Native Markets holds commanding 92% odds on #Polymarket to secure the partnership for issuing Hyperliquid's native stablecoin USDH. The startup, co-founded by early $HYPE ecosystem advocate Max Fiege, has garnered over 30% of delegated stake ahead of Sunday's validator vote.

The competition intensified after Hyperliquid removed its staked tokens from validator weighting on Thursday, transferring decision-making power to community holders. Eight teams initially submitted proposals before #Ethena withdrew, leaving seven contenders for managing the $5.9 billion stablecoin reserve.

Hyperliquid Foundation pledged to "effectively abstain by voting for the team with the most non-Foundation votes" as validator commitments roll in. The largest decentralized derivatives exchange seeks a "Hyperliquid-first, Hyperliquid-aligned, and compliant USD stablecoin" to replace Circle's $USDC dominance.

Paxos trails with 7.6% of delegated stake, despite offering MiCA compliance, and plans to use 95% of reserve yield for $HYPE buybacks. The established stablecoin issuer partnered with PayPal and submitted what some observers called a more attractive proposal.

#Stablecoin startup Agora pledged "100% of net revenue" sharing with Hyperliquid after raising $50 million in Series A funding. The Nick VanEck-founded company recently launched white-labeled stablecoin products for institutional clients.