Joins Race to Issue Hyperliquid’s USDH Stablecoin With BlackRock-Backed Token

Decentralized finance protocol Ethena ENA$0.8244 submitted Tuesday a proposal to difficulty Hyperliquid’s upcoming stablecoin, becoming a member of a bidding race that has already attracted a slew of corporations like Paxos, Sky, Frax and Agora.

The token can be totally backed by Ethena’s USDtb, a stablecoin issued with federally chartered financial institution Anchorage Digital and totally backed by BUIDL, the tokenized cash market fund by asset administration large BlackRock and Securitize.

“We are excited to enable Ethena’s USDtb, which is 100% backed by BUIDL and uniquely positioned to offer institutional grade cash management as well as on-chain liquidity to Hyperliquid users,” mentioned Robert Mitchnick, Blackrock’s head of digital belongings, within the proposal.

If adopted, Ethena pledged that 95% of web income from USDH reserves would circulation again to the Hyperliquid ecosystem, the proposal mentioned. Ethena additionally mentioned it will cowl the prices of migrating present USDC buying and selling pairs on Hyperliquid to USDH to ease adoption.

The proposal comes as competitors to win the issuance of Hyperliquid’s USDH stablecoin is intensifies. The decentralized alternate executed virtually $400 billion in perpetuals buying and selling quantity final month, making it a horny marketplace for stablecoin suppliers to nook. Sky (previously MakerDAO), Paxos, Sky, Frax, Agora and Native Markets threw their hat within the ring. Validators are set to vote on proposals on September 14.

Read extra: Sky Pitches Genius-Compliant USDH Stablecoin With $8B Balance Sheet and 4.85% Yield