Will Ethena’s USDH Proposal Make Hyperliquid the Belle of the Ball? 💃🎩

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Oh, darling, Ethena Labs has thrown its hat into the ring to operate Hyperliquid’s USDH stablecoin. Imagine this: a structure dripping with full collateralization in USDtb, tied to Blackrock’s tokenized money market fund BUIDL via Securitize. It’s like a debutante ball for stablecoins, and everyone’s invited-well, almost everyone.

Blackrock, Securitize, and Ethena Walk Into a Bar… 🍸

The latest proposal from Ethena is serving pure drama by positioning USDH as “Hyperliquid-first.” It’s backed 100% by USDtb, which, darling, is nestled snugly in Blackrock’s BUIDL fund via Securitize. Robert Mitchnick, Blackrock’s head of digital assets, quipped:

“We are thrilled to enable Ethena’s USDtb, which offers institutional-grade cash management and onchain liquidity to Hyperliquid users. Simply marvelous, isn’t it?”

Ethena’s plan? Oh, it’s a veritable cornucopia of generosity-or so they say. At least 95% of net revenue from reserves will allegedly flow back to Hyperliquid’s community through HYPE purchases and other contributions. How noble! But don’t get too excited; specifics depend on validator milestones and future votes. Naturally. They’re also offering to cover USDC-to-USDH migration costs if pairs are redenominated on the core exchange. How very… considerate of them.

Also read: Paxos, Agora, and Frax Are Throwing Their Hats In Too-It’s a Stablecoin Smackdown!

Now, security is being handled by an elected guardian network drawn from Hyperliquid validators. These guardians will have the power to freeze, reissue, or resolve incidents involving USDH. Ethena proposes managing back-end operations while distributing key controls to this guardian set, which might include teams like Layerzero-if the community deems them worthy, of course. How delightfully democratic!

And here’s the kicker: while the backing could later include USDe or hUSDe, the proposal seeks approval only for USDtb at launch. Any changes would require new community authorization. Oh, the suspense! Ethena boasts of its operational history with USDe and USDtb, claiming over $23 billion in mints and redemptions without downtime. Bravo! They also note USDtb’s integration with Blackrock’s BUIDL and its planned issuance through Anchorage Digital Bank under the GENIUS framework. Truly, innovation at its finest.

Meanwhile, other bidders are circling like vultures, including Paxos, Agora, Frax, Sky, Bastion, and Native Markets. The selection process, run by the Hyperliquid community and validators, focuses on capacity, security, and economics. Who will win this high-stakes game? Place your bets, darlings.

Ethena’s proposal also hints at broader initiatives tied to Hyperliquid’s HIP-3 markets and potential liquidity support through Ethena-affiliated products. Partners like Based, Liminal, and Unit are mentioned, all aimed at deepening market liquidity and expanding collateral options. How positively thrilling!

According to the document, USDtb would be deployed natively on HyperEVM, and Securitize plans to extend tokenization services to the network if the bid succeeds. Anchorage is cited as a likely custodian for on-chain reserves, with public, segregated wallets proposed for transparency. Oh, transparency! What a novel concept.

Also read: Three More Bidders Join the Fray for Hyperliquid’s USDH Ticker-Who Will Prevail?

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2025-09-10 02:15