Unveiling the **Crucial** Hyperliquid USDH Stablecoin Race: BitGo Compliance, OpenEden Yield, and the Leading Bids

The cryptocurrency world is buzzing with anticipation. Hyperliquid, a prominent derivatives exchange, is set to launch its native stablecoin, USDH. This **Hyperliquid USDH** launch has ignited a fierce competition among eight prominent bidders. The stakes are incredibly high for the future of decentralized finance. Validators will soon decide who manages a significant $5.9 billion stablecoin reserve. This pivotal decision will shape the ecosystem’s future.

The Intense Battle for Stablecoin Issuance

Eight contenders have entered the race to issue Hyperliquid’s planned native stablecoin, USDH. The final day for submissions saw OpenEden and BitGo join the competitive field. Other notable suitors include Ethena, Paxos, Frax, Agora, Native Markets, and Sky. Hyperliquid validators began voting on Thursday. They will continue casting their votes until Sunday. The winning bid gains control over Hyperliquid’s substantial stablecoin reserve. Currently, this reserve holds 95.56% in USDC, according to DefiLlama. This decision is crucial for the **Stablecoin Issuance** landscape.

OpenEden’s Vision: Pledging Generous OpenEden Yield

OpenEden, a real-world asset (RWA) tokenization platform, presented its compelling proposal on Wednesday. Jeremy Ng, OpenEden’s founder and CEO, outlined their strategy. The platform pledged to distribute all generated yield from the USDH reserves back into the Hyperliquid ecosystem. This includes important buybacks. Furthermore, OpenEden plans to use proceeds from minting and redeeming USDH. These proceeds will buy back Hyperliquid’s HYPE token. They will then distribute these tokens to Hyperliquid validators. The company also earmarked 3% of its native EDEN token supply for additional incentives. These incentives could increase in the future. OpenEden intends to store USDH reserves in a tokenized US Treasury Bills Fund. The Bank of New York Mellon will custody this fund. The company has strategically partnered with:

• The Bank of New York Mellon
• Chainlink
• AEON Pay
• Monarq Asset Management

These partnerships aim to boost adoption and ensure robust infrastructure. This focus on **OpenEden Yield** could significantly benefit the Hyperliquid community.

BitGo’s Strategic Edge: Highlighting BitGo Compliance

Meanwhile, crypto infrastructure provider BitGo emphasized its robust approach. BitGo plans to leverage a diverse portfolio of US dollar-backed liquid assets. These include bank deposits and short-term treasury bills. Such assets will back the minting and redeeming of USDH. The company stated its intention to use Chainlink’s cross-chain interoperability protocol. This ensures seamless interoperability across various blockchains. The yield generated from these underlying assets will serve a dual purpose. It will buy and stake HYPE tokens. BitGo will take a 0.3% fee from the total reserves for its services. Significantly, BitGo highlighted its strong regulatory compliance as a major strength. Six of its entities hold licenses from key global jurisdictions. These include Dubai, Singapore, Denmark, and New York. Additionally, BitGo possesses a Markets in Crypto-Assets (MiCA) license from Germany. This strong emphasis on **BitGo Compliance** offers a distinct advantage in the competitive stablecoin market.

The Frontrunner: Analyzing the Native Markets Proposal

As the voting commenced, Native Markets quickly emerged as a strong frontrunner. Co-founded by community member Max Fiege, their proposal garnered significant support. At the time of writing, Native Markets secured 33.73% of the delegate stake. Their proposal outlines a plan to split the proceeds from the reserves. Half of these proceeds would facilitate HYPE token buybacks. The other half would go to the Assistance Fund. However, this **Native Markets Proposal** has faced considerable community backlash. Haseeb Qureshi, managing partner at crypto venture fund Dragonfly, voiced his concerns. He expressed doubts regarding the fairness of the bidding process. “Hearing from multiple bidders that none of the validators are interested in considering anyone besides Native Markets. It’s not even a serious discussion, as though there was a backroom deal already done,” Qureshi stated. Nansen CEO Alex Svanevik, however, refuted this claim. He asserted that Nansen and its allies actively engaged with bidders. They encouraged all participants to submit proposals, fostering a competitive process.

The Unassigned Votes: A Dynamic Outcome for Hyperliquid USDH

The voting landscape remains dynamic. Paxos Labs, which submitted a revised bid, currently holds second place with 11.52% of the vote share. Crucially, a significant 46.49% of the delegate stake remains unassigned. This substantial portion could drastically alter the final outcome. The unassigned votes introduce considerable uncertainty into who will ultimately create the **Hyperliquid USDH** token. A Polymarket poll indicates strong market sentiment favoring Native Markets. Approximately 90% of poll users anticipate their victory. Other contenders, Ethena Labs and Sky (formerly Marker), also submitted their proposals earlier in the week. The final days of voting will be closely watched. The decision will profoundly impact Hyperliquid’s ecosystem and the broader DeFi space.

The competition to issue Hyperliquid’s USDH stablecoin is reaching its climax. The proposals from OpenEden and BitGo highlight diverse strategies. OpenEden emphasizes community yield and RWA integration. BitGo champions regulatory compliance and institutional-grade infrastructure. Meanwhile, Native Markets holds a leading position, albeit with some controversy. The unassigned votes hold the key to this pivotal decision. The crypto community eagerly awaits the final results, understanding the profound implications for Hyperliquid’s future and the evolving stablecoin landscape.