Native Markets 92% chance to win USDH issuance rights? Hyperliquid stablecoin bidding war intensifies

The decentralized derivatives trading platform Hyperliquid is entering the final bidding stage for the issuance rights of the USDH native stablecoin, with a winning probability of up to 92% according to predictions from Polymarket, with Native Markets co-founded by early supporters. This competition is not only about who will control the $5.9 billion stablecoin reserve but has also become one of the most followed events in the Decentralized Finance (DeFi) space.

Native Markets Leads the Bidding, Community Voting Becomes Key

On-chain data shows that Native Markets currently holds over 30% of the delegated shares, far ahead of the second place Paxos (7.6%). The company was co-founded by Max Fiege, an early advocate of the Hyperliquid ecosystem, and has received support from several community members.

Hyperliquid Foundation announced last week that it would no longer vote in the name of the foundation, but instead support the team with the highest votes based on the collective intention of the validators, giving the community a greater voice in the decision-making of USDH issuance.

Competitors are gathering, and the issuance rights of USDH are intensifying

The bidding attracted participation from multiple institutions including Paxos, Agora, Frax, Sky (formerly MakerDAO), BitGo, OpenEden, and others.

Paxos: Proposes a compliance plan that meets the MiCA and GENIUS bills, and commits to using 95% of reserve profits for HYPE buybacks.

Agora: Founded by Nick VanEck, committed to sharing 100% of net revenue with Hyperliquid, and raised $50 million in Series A funding.

Ethena Labs: Although they have withdrawn from the bidding, founder Guy Young publicly praised the success of Native Markets, believing that it reflects the openness and competitive spirit of the Hyperliquid community.

Controversy and Doubt: Fair Competition or Internal Bias?

Despite the clear lead of Native Markets, some observers have questioned the bias in the bidding process. Haseeb Qureshi, co-founder of Dragonfly, described this as "a bit of a farce," suggesting that a winner may have already been locked in internally at Hyperliquid.

Lilian Aliaga, co-founder of OAK Research, also pointed out that Native Markets, as a relatively newly established team, was able to submit proposals and gain majority support from validators in a short period of time, which is puzzling.

Plans and Commitments of Native Markets

Native Markets stated that its USDH issuance plan will comply with GENIUS standards and will inject part of the reserve profits into the Hyperliquid assistance fund. Team members include former Uniswap Labs president MC Lader and blockchain researcher Anish Agnihotri.

Fiege emphasized in response to the controversy: "We will not take lightly the responsibility to prove ourselves." This move is seen as a direct response to external doubts and also demonstrates their determination to maintain transparency during the bidding process.

Conclusion

As the Hyperliquid validators are about to vote, whether Native Markets can ultimately secure the issuance rights of USDH will directly impact the stablecoin ecosystem and capital flows of the decentralized derivatives trading platform. This bidding is not only a contest of technology and solutions but also a touchstone for community governance and trust mechanisms. Investors and DeFi participants should closely follow the voting results, as they could become an important turning point in the changes of the stablecoin market landscape.