Hyperliquid Sets Governance Vote to Decide USDH Stablecoin Issuer

Quick Breakdown

• Hyperliquid’s validators will decide the USDH stablecoin issuer in a governance vote on September 14.
• Four contenders, Paxos, Frax, Agora, and Native Markets, have submitted competing proposals.
• The announcement pushed HYPE token up 12%, near its all-time high, supported by strong trading volumes.

Governance Vote Scheduled for September 14

Decentralized exchange and Layer-1 blockchain Hyperliquid has confirmed that a governance vote will be held on September 14, between 10:00 and 11:00 UTC, to determine which team will be granted the USDH ticker for issuing a native stablecoin on the network.

Ahead of the decision, competing issuers are required to submit proposals by September 10, while validators must publicly declare their choice by September 11. This setup will allow users to align their stake with validators representing their preferred option.

Hyperliquid clarified that the vote relates only to the USDH ticker assignment and does not grant the winner any exclusive rights over stablecoin issuance. The blockchain will continue to host multiple stablecoins alongside USDH.

Four Teams Compete for the USDH Designation

As of September 8, four groups have entered the race to issue USDH: Paxos Labs, Frax Finance, Agora, and Native Markets, a Hyperliquid-native team. Each proposal outlines a different approach to collateralization and distribution.

Proposal submitted: USDH powered by Paxos

USDH issued by Paxos would mean:

❏ Global issuance that is GENIUS compliant
❏ Revenue sharing that fuels HYPE, protocols and validators
❏ Regulatory clarity + global scale to match @HyperliquidX ‘s explosive growth

Hyperliquid. pic.twitter.com/iKIFUOT0bQ

— Paxos (@Paxos) September 6, 2025

Notably, Agora’s plan includes directing net revenue from its U.S. Treasury and cash reserves into Hyperliquid’s Assistance Fund or HYPE token buybacks, adding a unique incentive to its model.

Hyperliquid first revealed its intention to launch a proprietary stablecoin on September 5, describing USDH as a “Hyperliquid-first, compliant USD stablecoin” aimed at improving liquidity and reducing reliance on bridged assets. Currently, USDC dominates with 95% of the $5.6 billion stablecoin supply on Hyperliquid, according to DeFiLlama.

HYPE Token Surges on Stablecoin Plans

The rally builds on the protocol’s growing reputation as a leading DEX for perpetual futures trading, with $398 billion in derivatives volume and $20 billion in spot trades recorded last month alone. Hyperliquid now ranks as the eighth-largest DeFi protocol by total value locked (TVL).

In May, Hyperliquid submitted formal comment letters to the U.S. Commodity Futures Trading Commission (CFTC), advocating for a regulatory framework that supports DeFi while fostering innovation in emerging markets such as perpetual derivatives and 24/7 trading.