Agora and MoonPay Challenge Stripe’s Control Over Hyperliquid’s USDH Stablecoin

Stripe faces mounting competition in its bid to issue Hyperliquid’s USDH stablecoin, as a coalition of crypto firms, including MoonPay and Agora, has launched a competing proposal. The Hyperliquid team announced its intention to create a “Hyperliquid-first, Hyperliquid-aligned, and compliant USD stablecoin” through the USDH ticker, with the Native Markets team submitting the first proposal—advocating for Stripe’s Bridge platform to issue the stablecoin. However, Agora’s CEO Nick Van Eck has raised concerns about Stripe’s vertical integration, citing potential conflicts of interest given the company’s plans for its Tempo blockchain. Van Eck emphasized that allowing Stripe to issue USDH could lead to user activity being diverted away from Hyperliquid and toward Stripe’s own ecosystem.

MoonPay’s president and board member Keyth Grossman has joined Agora’s proposal, criticizing the Native Markets plan as prioritizing “BS capture” over credibility and alignment with Hyperliquid’s interests. He highlighted the importance of a stablecoin that is scalable, credible, and aligned with the ecosystem, rather than serving the financial interests of external parties. Rob Hadick, general partner at Dragonfly.xyz, endorsed the coalition’s proposal, calling it the “unarguable best” option. This move signals growing resistance to Stripe’s influence in the stablecoin space, particularly as firms like Paxos and Frax also submit competing proposals to issue USDH. Paxos, for instance, has pledged to redirect a significant portion of USDH’s interest earnings toward Hyperliquid’s HYPE token buybacks, while Frax promises to return all earnings to the community.

Hyperliquid’s current reliance on Circle’s USDC stablecoin underscores the need for a proprietary stablecoin to reduce dependency on third-party providers. The platform handled $398 billion in perpetual derivatives trading volume and $20 billion in spot trades last month, with USDC accounting for the vast majority of liquidity. By launching USDH, Hyperliquid aims to capture revenue from the token’s reserve assets while ensuring compliance with emerging regulatory standards such as the GENIUS Act. This initiative aligns with broader trends in the stablecoin sector, where firms increasingly seek to create tokens that integrate directly into their ecosystems. Stripe, MetaMask, and others have all launched or are developing their own stablecoins, reflecting a shift toward self-sustaining financial infrastructure.

The USDH ticker will be allocated through an on-chain governance vote, with proposals from Paxos, Agora, Frax, and Native Markets already submitted. Paxos’s bid includes MiCA and GENIUS Act compliance, while its Labs team plans to provide liquidity between USDC and USDH to facilitate a smooth transition. Agora, meanwhile, has formed a coalition with Rain and LayerZero, pledging 100% net revenue share with Hyperliquid and emphasizing its neutrality as an issuer. The Native Markets team, including former Uniswap Labs executives, has also submitted a proposal leveraging Bridge, Stripe’s stablecoin payment platform. Despite these efforts, concerns remain about Stripe’s potential to steer users away from Hyperliquid toward its own Tempo blockchain.

The competition for USDH issuance highlights the growing significance of stablecoins in the crypto ecosystem, with financial institutions and regulators increasingly engaging with the asset class. HSBC and ICBC are reportedly preparing to apply for stablecoin licenses in Hong Kong, while Wyoming’s Frontier Stable Token (FRNT) and 1Money’s expansion of its money transmitter licenses illustrate the rapid pace of adoption. As Hyperliquid moves forward with its governance vote, the outcome could shape the future of stablecoin integration in decentralized trading platforms and influence broader market dynamics.

Source: [1] MoonPay, Agora Coalition Challenges Stripe For USDH ... (https://cointelegraph.com/news/hyperliquid-usdh-stablecoin-stripe-moonpay-paxos) [2] Paxos, Frax, and Agora fight for Hyperliquid's USDH ... (https://www.theblock.co/post/369720/paxos-frax-and-agora-fight-for-hyperliquids-stablecoin-contract-with-more-bids-likely-incoming) [3] Hyperliquid Moves Forward to Launch Proprietary ... (https://www.coindesk.com/tech/2025/09/05/hyperliquid-moves-forward-to-launch-proprietary-stablecoin)