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Ethena Enters Competitive Bidding for Hyperliquid's Stablecoin with BlackRock-Backed Proposal

Ethena Enters Competitive Bidding for Hyperliquid's Stablecoin with BlackRock-Backed Proposal

Ethena has put forward a formal proposal to manage USDH, Hyperliquid’s planned native stablecoin, positioning itself against competitors like Sky, Frax, and Agora with backing from Anchorage and BlackRock.

HYPE
USDE
BUIDL

Fact Check
Multiple credible sources, including CoinDesk, Decrypt, and Bitget, explicitly confirm that Ethena has entered a competitive race to issue Hyperliquid's stablecoin (USDH). The articles consistently state that Ethena's proposal is 'BlackRock-backed,' referencing the indirect backing from BlackRock's BUIDL tokenized fund.
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Summary

Ethena has proposed managing USDH, Hyperliquid’s upcoming stablecoin, backed by USDtb issued by Anchorage Digital Bank and collateralized by BlackRock’s BUIDL fund. Ethena aims to combine institutional credibility and scalability, citing its successful track record with tokenized dollar assets. The stablecoin would be governed by a network of validators, with Ethena pledging to invest at least $75 million to grow Hyperliquid’s products. The move adds pressure on competing proposals from Sky, Frax, and Agora for the role of USDH issuer.

Terms & Concepts
  • USDH: A proposed stablecoin for the Hyperliquid platform, designed to be backed by USDtb collateralized by BlackRock BUIDL.
  • Hyperliquid: A platform providing perpetual contract trading with significant liquidity and fee revenue, focused on blockchain-based financial products.
  • Stablecoin: A cryptocurrency designed to maintain a stable value by being pegged to a reserve asset, typically the US dollar.