Ethena Labs announced its participation in the USDH campaign on Tuesday, expressing its intention to become an issuer of the Hyperliquid stablecoin. At present, the decentralized exchange and layer-1 network mainly rely on Circle's USDC and Tether's USDT0, but the Hyperliquid community is soliciting proposals for a stablecoin that is "highly compatible with Hyperliquid" as an alternative.
Paxos, a stablecoin issuer, and World Liberty Financial, a decentralized finance project backed by US President Donald Trump, have submitted proposals. Ethena's proposal highlights that its support will also combine the power of partners. Ethena showcased partnerships with Anchorage Digital, a federally chartered digital asset bank, and Securitize, a real-world asset tokenization company backed by BlackRock. Anchorage is responsible for issuing Ethena's USDtb stablecoin, which is backed by BlackRock's tokenization fund BUIDL.
Robert Mitchnick, head of digital assets at BlackRock, said in the proposal: "We are pleased to be able to connect Ethena's USDtb to Hyperliquid. USDtb is 100 per cent BUIDL-backed and enables institutional-grade cash management and on-chain liquidity for Hyperliquid users." Under Ethena's proposal, USDH will initially be backed by USDtb, indirectly by the $14 trillion asset management giant BlackRock's BUIDL fund. At least 95 per cent of the proceeds generated by USDH reserves will be allocated to Hyperliquid's "bailout fund", used to buy back HYPE tokens and distribute validators.
BlackRock executives pitch Ethena's stablecoin proposal to Hyperliquid
2025-09-10 00:18:26
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