The issuance rights of the USDH stablecoin under Hyperliquid have attracted competition from multiple institutions, with Paxos, Frax, and others having submitted bidding proposals.

On September 8, TheBlock reported that stablecoin issuers Paxos, Frax Finance, Agora, and others are competing for the issuance rights of the upcoming USDH stablecoin from Hyperliquid. Hyperliquid announced this plan last Friday and stated that the goal is to launch a "USD stablecoin that prioritizes Hyperliquid, aligns with Hyperliquid's philosophy, and ensures Compliance," reserving the USDH token code for this purpose. Hyperliquid invites teams to submit proposals, with the winner selected through validators' votes, gaining the right to purchase the token code and issue the token. Paxos submitted a USDH bidding proposal yesterday, promising to offer Compliance in line with the MiCA and GENIUS acts, support for native deployment on HyperEVM and HyperCore, and provide 95% of interest income for HYPE token buybacks, redistributing the repurchased tokens to "ecosystem programs, partners, and users." Frax proposed a "community-first" proposal, planning to peg USDH to frxUSD at a 1:1 ratio, with frxUSD backed by BlackRock's yield-generating BUIDL on-chain treasury fund. Frax stated, "100% of the underlying treasury yield will be directly allocated to Hyperliquid users through on-chain programmatic means, and Frax charges no fees." Hyperliquid's current stablecoin deposits can yield an annualized return of $220 million. Agora has also formed a joint bidding team for USDH, promising that USDH will allocate "100% of net income" to Hyperliquid for platform assistance funds or HYPE token buybacks. Additionally, Ethena Labs has hinted at possibly submitting a USDH proposal on the X platform. Hyperliquid requires all companies to submit proposals by September 10 (Wednesday), and voting will take place on September 14 (Sunday).