The decentralized finance platform Ethena ENA$0.8154 has put forth a proposal on Tuesday to issue Hyperliquid’s forthcoming stablecoin, entering a competitive landscape that already includes notable players such as Paxos, Sky, Frax, and Agora.
This new token will be entirely supported by Ethena’s USDtb—a stablecoin developed in collaboration with the federally chartered bank Anchorage Digital and fully backed by BUIDL, the tokenized money market fund managed by the asset management titan BlackRock along with Securitize.
“We are thrilled to support Ethena’s USDtb, which is completely backed by BUIDL and strategically positioned to provide institutional-grade cash management alongside on-chain liquidity for Hyperliquid users,” stated Robert Mitchnick, BlackRock’s head of digital assets in the proposal.
If approved, Ethena has committed that 95% of net earnings from USDH reserves will be reinvested into the Hyperliquid ecosystem. Furthermore, they indicated plans to absorb costs associated with transitioning existing USDC trading pairs on Hyperliquid over to USDH to facilitate smoother adoption.
This proposal emerges amid escalating competition for securing the issuance rights of Hyperliquid’s USDH stablecoin. Last month alone saw nearly $400 billion in perpetual trading volume executed on this decentralized exchange—making it an enticing target for stablecoin issuers. Competitors like Sky (previously known as MakerDAO), Paxos, Frax, Agora and Native Markets have all entered this bidding contest. Validators are scheduled to cast their votes on these proposals come September 14.
Read more: Sky Pitches Genius-Compliant USDH Stablecoin With $8B Balance Sheet and 4.85% Yield