Validators Set to Decide Future of USDH on Hyperliquid by September 10

Paxos Trust Company, Ethena LLC, and Native Markets are among the leading contenders seeking to issue the stablecoin USDH on the Hyperliquid blockchain platform ahead of a validator vote scheduled for September 10, 2025. The initiative aims to introduce USDH as a fully collateralized U.S. dollar-backed stablecoin designed for high-performance trading environments, with Hyperliquid’s architecture expected to offer faster settlement times and enhanced liquidity for traders.

The stablecoin, USDH, is currently under regulatory scrutiny by the U.S. Securities and Exchange Commission (SEC) but has gained traction in the decentralized finance (DeFi) space due to its transparent collateral model and compliance with certain U.S. financial regulations. Hyperliquid, a layer-1 blockchain optimized for on-chain derivatives trading, is evaluating USDH as a potential settlement asset for its growing ecosystem of traders and institutional participants.

Paxos, a licensed trust company, has already issued a similar stablecoin, PAX, and has the infrastructure and regulatory approval necessary to support USDH issuance. Ethena, which focuses on algorithmic stablecoins and synthetic assets, has also submitted a formal proposal to the Hyperliquid validator community. Meanwhile, Native Markets, a DeFi derivatives platform, has expressed interest in offering USDH as a native asset on its platform if approved.

Validator nodes have been invited to review the proposals and vote on the final selection of issuers by the set deadline. According to the Hyperliquid whitepaper, the selected issuer(s) will be responsible for maintaining the peg to the U.S. dollar and ensuring real-time audibility of the collateral backing USDH. The platform has emphasized the need for a transparent and auditable system to foster trust among its user base, especially in light of recent stablecoin-related regulatory actions.

Analysts suggest that the adoption of USDH on Hyperliquid could enhance the platform’s appeal to institutional traders seeking a stable and regulated settlement medium. This move is also seen as a strategic response to the growing demand for U.S. dollar equivalents that avoid the regulatory risks associated with existing stablecoins. If approved, USDH could become a pivotal asset in Hyperliquid’s trading ecosystem, supporting a wide range of derivatives and spot transactions.