Real-world asset (RWA) tokenization platform OpenEden and crypto infrastructure provider BitGo have joined the growing list of contenders vying to issue Hyperliquid’s planned native stablecoin, USDH, bringing the total number of bidders to eight.
Hyperliquid validators will begin voting on the USDH proposals on Thursday, with the voting window open until Sunday. Other competitors include Ethena, Paxos, Frax, Agora, Native Markets, and Sky.
The winning bidder will determine how Hyperliquid’s $5.9 billion stablecoin reserve—currently 95.56% held in USDC, according to DefiLlama—is managed.
OpenEden’s USDH Proposal
OpenEden’s founder and CEO, Jeremy Ng, outlined the platform’s plans for managing USDH if its bid succeeds. The proposal includes:
- Distributing all yield generated from USDH reserves back to the Hyperliquid ecosystem, including buybacks.
- Using proceeds from minting and redeeming USDH to buy back Hyperliquid’s HYPE token and distribute it to validators.
- Allocating 3% of its native EDEN token supply for additional incentives, with potential for future increases.
- Storing USDH reserves in a tokenized US Treasury Bills Fund under the custody of The Bank of New York Mellon.
- Partnering with The Bank of New York Mellon, Chainlink, AEON Pay, and Monarq Asset Management to drive adoption.
BitGo Highlights Regulatory Compliance
BitGo plans to leverage USD-backed liquid assets, bank deposits, short-term Treasury bills, and other instruments for minting and redeeming USDH. The company will:
- Use Chainlink’s cross-chain interoperability protocol to maintain seamless operations across blockchains.
- Allocate yield from the underlying assets to buy and stake HYPE tokens, while taking a 0.3% fee from the total reserves.
- Emphasize its regulatory compliance, noting that six of its subsidiaries have licenses from Dubai, Singapore, Denmark, New York, and a Markets in Crypto-Assets license from Germany.
Native Markets Leads So Far
As of now, Native Markets leads in voting, securing 33.73% of delegate stake. Co-founded by community member Max Fiege, the platform proposes splitting reserve proceeds: half for HYPE buybacks and half for the Assistance Fund. However, this proposal has faced criticism from the community.
Haseeb Qureshi, managing partner at crypto venture fund Dragonfly, questioned the legitimacy of the bidding process:
“Hearing from multiple bidders that none of the validators are interested in considering anyone besides Native Markets. It’s not even a serious discussion, as though there was a backroom deal already done.”
Alex Svanevik, CEO of Nansen, pushed back, stating that they and their partners have engaged with all bidders and encouraged competition to ensure a fair process.
Paxos Labs, which submitted a revised bid on Wednesday, currently holds second place with 11.52% of the vote.
However, nearly 46.49% of the voting stake remains unassigned, leaving the final outcome for who will issue the USDH token still uncertain.
A Polymarket poll suggests that market participants largely expect Native Markets to win, with 90% of respondents favoring its proposal.
Other contenders include Ethena Labs, which submitted its proposal on Tuesday, and Sky (formerly Marker), which submitted its bid on Monday.
