Asia Morning Briefing: Native Markets Takes Early Lead in Hyperliquid’s USDH Stablecoin Vote
In the rapidly evolving world of cryptocurrencies, today’s buzz centers around the ongoing vote for Hyperliquid’s USDH stablecoin contract. As of Thursday morning in Hong Kong, Native Markets, a team aligned with Stripe, has emerged as an early front-runner, securing 30.8% of the delegated stake. This initial lead is buoyed by significant backing from heavyweight validators such as infinitefield.xyz, holding 13.5%, and Alphaticks with 5.2%.
The Contenders and Their Stakes
While Native Markets has taken the early lead, the competition is far from over. Paxos Labs, the regulated issuer behind PayPal’s PYUSD, has garnered a respectable 7.6% support, with validators B-Harvest and HyBridge backing its bid. Meanwhile, newcomer Ethena has managed to secure 4.5%, but other contenders like Agora, Frax, and Sky, despite their high-profile pitches, are yet to make a significant impact on the voting landscape.
A crucial aspect of this vote is the unassigned 57% of the stake. Heavyweights such as Nansen x HypurrCollective, the largest single validator with over 18%, and Galaxy Digital, are yet to cast their votes. Their decisions could very well determine if Native Markets’ momentum will carry through to the September 14 deadline.
Native Markets’ Edge and the Competitive Landscape
Native Markets is pitching a Hyperliquid-native stablecoin, to be issued via Stripe’s Bridge infrastructure. The proposal includes yield-sharing to an Assistance Fund and HYPE buybacks. However, such an ambitious plan doesn’t come without its criticisms. Notably, Agora CEO Nick van Eck has raised concerns about potential conflicts arising from Stripe’s simultaneous push to launch its Tempo blockchain and control over the wallet provider, Privy.
Despite these criticisms, the allure of Stripe’s extensive global payment rails seems to be a compelling factor for some validators. The outcome of this vote is significant, considering Hyperliquid’s current holdings of $5.5 billion in USDC deposits, representing approximately 7.5% of the stablecoin’s supply. Transitioning to USDH could redirect hundreds of millions in annual Treasury yield.
The Stakes for Hyperliquid and the Broader Crypto Market
For Hyperliquid, this isn’t just about another token launch. With a commanding presence over nearly 80% of decentralized perpetuals trading, the issuer that secures the USDH contract will effectively integrate into the financial backbone of one of crypto’s fastest-growing exchanges. Each contender offers unique incentives: Paxos has promised 95% of reserve earnings to HYPE buybacks, Frax offers 100% of yield directly to users, Agora assures 100% of net yield with institutional custodianship, and Sky (ex-MakerDAO) has proposed 4.85% returns plus a $25 million “Hyperliquid Star” project.
Market Reactions and Broader Implications
The broader crypto market has shown positive movement amid this pivotal voting process. Bitcoin is currently trading at $114,053, up 2.6% over the past 24 hours, reflecting a short-term rebound fueled by positive risk sentiment. Ethereum, too, is on the up, trading at $4,373.99, despite a recent mass-slashing event affecting over 30 validators.
Elsewhere, traditional markets also show mixed reactions. Gold remains steady near $3,635 an ounce, with investors anticipating U.S. inflation data that could influence Federal Reserve decisions. Meanwhile, Japan’s Nikkei 225 saw a slight increase of 0.23%, buoyed by Wall Street’s record highs.
The Road Ahead
As the September 14 deadline approaches, all eyes are on the unassigned stakes and the decisions of influential validators. The outcome not only holds implications for the future of Hyperliquid’s financial ecosystem but also sets the tone for the broader cryptocurrency market, which continues to grapple with regulatory challenges and evolving investor sentiments.
The landscape is dynamic, with each validator’s vote potentially reshaping the strategic direction of one of the most significant stablecoin contracts in the cryptocurrency industry today. As stakeholders await the final results, the tension is palpable, underscoring the complex interplay of innovation, regulation, and market dynamics that characterize the world of digital currencies.
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
