{"id":526864,"date":"2025-09-10T18:30:49","date_gmt":"2025-09-10T13:00:49","guid":{"rendered":"https:\/\/ambcrypto.com\/?p=526864"},"modified":"2025-09-10T14:24:21","modified_gmt":"2025-09-10T08:54:21","slug":"hyperliquid-stablecoin-battle-raises-backroom-deal-allegations-why","status":"publish","type":"post","link":"https:\/\/ambcrypto.com\/hyperliquid-stablecoin-battle-raises-backroom-deal-allegations-why\/","title":{"rendered":"Hyperliquid stablecoin battle raises &#8216;backroom deal&#8217; allegations &#8211; Why?"},"content":{"rendered":"<h2><strong>Key Takeaways<\/strong><\/h2>\n<p><em><span style=\"font-weight: 400;\">The Hyperliquid\u2019s USDH race is now down to Native Markets and Paxos. Who will win the deal by the 14th of September?<\/span><\/em><\/p>\n<hr \/>\n<p><a href=\"https:\/\/ambcrypto.com\/nasdaq-firm-to-swap-1m-sui-6-6k-sol-for-hype-why-now\/amp\/\"><span style=\"font-weight: 400;\">Hyperliquid\u2019s [HYPE]<\/span><\/a><span style=\"font-weight: 400;\"> proposed stablecoin, USDH, has triggered one of the most aggressive bidding wars in the crypto sector.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Top issuers like <\/span><a href=\"https:\/\/ambcrypto.com\/predictions\/ethena-price-prediction\"><span style=\"font-weight: 400;\">Ethena [ENA]<\/span><\/a><span style=\"font-weight: 400;\">, Paxos, <a href=\"https:\/\/ambcrypto.com\/sky-crypto-up-11-in-24-hours-whats-next-for-the-altcoins-buyers-now\/\" target=\"_blank\" rel=\"noopener\">Sky [SKY]<\/a> (formerly Maker), Frax, and others are all out fighting to be the official partner.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">But the top contender in the race, Native Markets, is a new player with no experience, which Dragonfly claims has been \u2018fixed\u2019 to win.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Slamming the process as a \u2018farce,\u2019 Dragonfly VC managing partner Haseeb Qureshi <\/span><a href=\"https:\/\/x.com\/hosseeb\/status\/1965520465172328717\"><span style=\"font-weight: 400;\">alleged<\/span><\/a><span style=\"font-weight: 400;\"> that it was rigged in favor of Native Markets.\u00a0<\/span><\/p>\n<blockquote><p><span style=\"font-weight: 400;\">\u201cHearing from multiple bidders that none of the validators are interested in considering anyone besides Native Markets. It&#8217;s not even a serious discussion, as though there was a backroom deal already done.\u201d<\/span><\/p><\/blockquote>\n<figure id=\"attachment_526872\" aria-describedby=\"caption-attachment-526872\" style=\"width: 600px\" class=\"wp-caption aligncenter\"><a href=\"https:\/\/ambcrypto.com\/wp-content\/uploads\/2025\/09\/Screenshot-2025-09-10-104823.png\"><img decoding=\"async\" class=\"size-full wp-image-526872\" src=\"https:\/\/ambcrypto.com\/wp-content\/uploads\/2025\/09\/Screenshot-2025-09-10-104823.png\" alt=\"Hyperliquid USDH\" width=\"600\" height=\"528\" srcset=\"https:\/\/ambcrypto.com\/wp-content\/uploads\/2025\/09\/Screenshot-2025-09-10-104823.png 600w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2025\/09\/Screenshot-2025-09-10-104823-300x264.png 300w\" sizes=\"(max-width: 600px) 100vw, 600px\" \/><\/a><figcaption id=\"caption-attachment-526872\" class=\"wp-caption-text\">Source: X<\/figcaption><\/figure>\n<p><span style=\"font-weight: 400;\">He cited Polymarket odds, bidders, and Native Markets&#8217; immediate proposal after Hyperliquid floated the request, suggesting the team had prior knowledge before the announcement was made public.\u00a0\u00a0<\/span><\/p>\n<h2><strong>Tight race between Paxos and Native Markets\u00a0<\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">At the time of writing, however, the contest has narrowed to <\/span><a href=\"https:\/\/ambcrypto.com\/paxos-proposes-usdh-stablecoin-with-95-buybacks-to-boost-hype-ecosystem\/\"><span style=\"font-weight: 400;\">Paxos<\/span><\/a><span style=\"font-weight: 400;\"> and Native Markets.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The chances of Paxos winning the bid surged to 47% after the <\/span><a href=\"https:\/\/x.com\/Paxos\/status\/1965601803225211280\"><span style=\"font-weight: 400;\">revised<\/span><\/a><span style=\"font-weight: 400;\"> proposal, but dropped a few hours later. Still, the market was <\/span><a href=\"https:\/\/polymarket.com\/event\/who-will-win-the-usdh-ticker-159\"><span style=\"font-weight: 400;\">pricing<\/span><\/a><span style=\"font-weight: 400;\"> Native Markets for a likely win at nearly 60%.<\/span><\/p>\n<figure id=\"attachment_526874\" aria-describedby=\"caption-attachment-526874\" style=\"width: 1324px\" class=\"wp-caption aligncenter\"><a href=\"https:\/\/ambcrypto.com\/wp-content\/uploads\/2025\/09\/Screenshot-2025-09-10-094511.png\"><img decoding=\"async\" class=\"size-full wp-image-526874\" src=\"https:\/\/ambcrypto.com\/wp-content\/uploads\/2025\/09\/Screenshot-2025-09-10-094511.png\" alt=\"Hyperliquid USDH\" width=\"1324\" height=\"646\" srcset=\"https:\/\/ambcrypto.com\/wp-content\/uploads\/2025\/09\/Screenshot-2025-09-10-094511.png 1324w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2025\/09\/Screenshot-2025-09-10-094511-300x146.png 300w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2025\/09\/Screenshot-2025-09-10-094511-1024x500.png 1024w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2025\/09\/Screenshot-2025-09-10-094511-768x375.png 768w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2025\/09\/Screenshot-2025-09-10-094511-1200x585.png 1200w\" sizes=\"(max-width: 1324px) 100vw, 1324px\" \/><\/a><figcaption id=\"caption-attachment-526874\" class=\"wp-caption-text\">Source: Polymarket<\/figcaption><\/figure>\n<p><span style=\"font-weight: 400;\">Most of the potential issuers are pledging 95%-100% HYPE value accrual, alongside support by regulated entities like BlackRock.\u00a0<\/span><\/p>\n<figure id=\"attachment_526875\" aria-describedby=\"caption-attachment-526875\" style=\"width: 1157px\" class=\"wp-caption aligncenter\"><a href=\"https:\/\/ambcrypto.com\/wp-content\/uploads\/2025\/09\/Screenshot-2025-09-10-100254.png\"><img decoding=\"async\" class=\"size-full wp-image-526875\" src=\"https:\/\/ambcrypto.com\/wp-content\/uploads\/2025\/09\/Screenshot-2025-09-10-100254.png\" alt=\"Hyperliquid\" width=\"1157\" height=\"518\" srcset=\"https:\/\/ambcrypto.com\/wp-content\/uploads\/2025\/09\/Screenshot-2025-09-10-100254.png 1157w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2025\/09\/Screenshot-2025-09-10-100254-300x134.png 300w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2025\/09\/Screenshot-2025-09-10-100254-1024x458.png 1024w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2025\/09\/Screenshot-2025-09-10-100254-768x344.png 768w\" sizes=\"(max-width: 1157px) 100vw, 1157px\" \/><\/a><figcaption id=\"caption-attachment-526875\" class=\"wp-caption-text\">Source: AMBCrypto<\/figcaption><\/figure>\n<p><span style=\"font-weight: 400;\">All proposals from potential issuers should be finalized by the 10th of September. On the 11th of September, Hyperliquid validators should state their preferred potential issuer.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The final <a href=\"https:\/\/www.flowscan.xyz\/usdh\">vote<\/a> by validators will be done on the 14th of September to allow stakers to align with the validators that mirror their choice.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">But what does Hyperliquid want to achieve with the USDH? And why now?\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Currently, Circle\u2019s USDC dominates the decentralized exchange (DEX) and the chain, with $5.5 billion worth of USDC.<\/span><\/p>\n<p><span style=\"font-weight: 400;\"> However, the yield gained ($100M) is not shared with Hyperliquid but with rival Coinbase (as per its agreement with Circle).\u00a0\u00a0<\/span><\/p>\n<figure id=\"attachment_526882\" aria-describedby=\"caption-attachment-526882\" style=\"width: 1189px\" class=\"wp-caption aligncenter\"><a href=\"https:\/\/ambcrypto.com\/wp-content\/uploads\/2025\/09\/Hyperliquid-USDH.jpg\"><img decoding=\"async\" class=\"size-full wp-image-526882\" src=\"https:\/\/ambcrypto.com\/wp-content\/uploads\/2025\/09\/Hyperliquid-USDH.jpg\" alt=\"Hyperliquid \" width=\"1189\" height=\"632\" srcset=\"https:\/\/ambcrypto.com\/wp-content\/uploads\/2025\/09\/Hyperliquid-USDH.jpg 1189w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2025\/09\/Hyperliquid-USDH-300x159.jpg 300w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2025\/09\/Hyperliquid-USDH-1024x544.jpg 1024w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2025\/09\/Hyperliquid-USDH-768x408.jpg 768w\" sizes=\"(max-width: 1189px) 100vw, 1189px\" \/><\/a><figcaption id=\"caption-attachment-526882\" class=\"wp-caption-text\"><span style=\"font-weight: 400;\">Source: Reciprocal Ventures<\/span><\/figcaption><\/figure>\n<p><span style=\"font-weight: 400;\">Apart from ecosystem growth, the stablecoin should help handle regulatory risks. Especially on the on\/off ramp side, according to <\/span><a href=\"https:\/\/x.com\/jimbo_evans\/status\/1965401991041232921\"><span style=\"font-weight: 400;\">James Evans<\/span><\/a><span style=\"font-weight: 400;\">, investment analyst at Reciprocal Ventures.\u00a0<\/span><\/p>\n<blockquote><p><span style=\"font-weight: 400;\">\u201cThat risk could materialize as an attack on Hyperliquid\u2019s on\/off ramps. So in addition to being a product decision, having a compliant stablecoin could be a first step to building regulatory legitimacy.\u201d<\/span><\/p><\/blockquote>\n<p><span style=\"font-weight: 400;\">Some, like Arthur Hayes, have <\/span><a href=\"https:\/\/x.com\/CryptoHayes\/status\/1965545802153296083\"><span style=\"font-weight: 400;\">backed<\/span><\/a><span style=\"font-weight: 400;\"> Ethena for the USDH bid. But others have pointed out that Paxos and Ethena have existing stablecoin products that would lead to conflicting interests.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Amid the bidding wars for USDH, HYPE holders have come out as the main beneficiary. The altcoin printed a new high of $55, up about 20% since the bidding began over the weekend.\u00a0<\/span><\/p>\n<figure id=\"attachment_526884\" aria-describedby=\"caption-attachment-526884\" style=\"width: 1950px\" class=\"wp-caption aligncenter\"><a href=\"https:\/\/ambcrypto.com\/wp-content\/uploads\/2025\/09\/HYPEUSDT_2025-09-10_10-46-56.png\"><img decoding=\"async\" class=\"size-full wp-image-526884\" src=\"https:\/\/ambcrypto.com\/wp-content\/uploads\/2025\/09\/HYPEUSDT_2025-09-10_10-46-56.png\" alt=\"Hyperliquid USDH\" width=\"1950\" height=\"1147\" srcset=\"https:\/\/ambcrypto.com\/wp-content\/uploads\/2025\/09\/HYPEUSDT_2025-09-10_10-46-56.png 1950w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2025\/09\/HYPEUSDT_2025-09-10_10-46-56-300x176.png 300w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2025\/09\/HYPEUSDT_2025-09-10_10-46-56-1024x602.png 1024w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2025\/09\/HYPEUSDT_2025-09-10_10-46-56-768x452.png 768w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2025\/09\/HYPEUSDT_2025-09-10_10-46-56-1536x903.png 1536w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2025\/09\/HYPEUSDT_2025-09-10_10-46-56-1200x706.png 1200w\" sizes=\"(max-width: 1950px) 100vw, 1950px\" \/><\/a><figcaption id=\"caption-attachment-526884\" class=\"wp-caption-text\">Source: HYPE\/USDT, TradingView<\/figcaption><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>HYPE holders are smiling to the bank as potential issuers fight over USDH.<\/p>\n","protected":false},"author":79,"featured_media":526890,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"om_disable_all_campaigns":false,"footnotes":""},"categories":[31,66,3,4,20],"tags":[],"class_list":["post-526864","post","type-post","status-publish","format-standard","has-post-thumbnail","category-altcoins-news","category-new-news","category-news","category-social","category-trading-view"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v28.5 (Yoast SEO v28.5) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Hyperliquid stablecoin battle raises &#039;backroom deal&#039; allegations - Why? - AMBCrypto<\/title>\n<meta name=\"description\" content=\"Hyperliquid USDH auction continue to elicit mixed reaction from top contenders and market watchers. 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