The issuance rights of the USDH stablecoin under Hyperliquid have attracted interest from multiple institutions, with Paxos, Frax, and others having submitted bidding proposals.

BlockBeats News, September 8th, According to TheBlock, stablecoin issuers Paxos, Frax Finance, Agora, and others are competing for Hyperliquid's upcoming USDH stablecoin issuance rights. Hyperliquid announced this plan last Friday, stating that the goal is to launch a "USD-pegged stablecoin prioritizing Hyperliquid, aligned with the Hyperliquid philosophy, and compliant," and has reserved the USDH token code for this purpose. Hyperliquid has invited teams to submit proposals, and the winner will be selected through validator voting to receive the token code purchase and issuance rights.

Paxos submitted a USDH bidding proposal yesterday, committing to provide compliance with MiCA and the GENIUS Act, support for native deployment on HyperEVM and HyperCore, and allocate 95% of interest income to HYPE token buyback, redistributing the bought-back tokens to "ecosystem initiatives, partners, and users."

Frax presented a "Community First" proposal, planning to peg USDH to frxUSD at a 1:1 ratio, with frxUSD backed by BlackRock Yield-BUILD on-chain sovereign fund. Frax stated, "100% of underlying sovereign fund yields will be distributed directly to Hyperliquid users through on-chain programmatic means, with no fees charged by Frax." The current stablecoin deposits in Hyperliquid could bring an annualized return of $220 million.

Agora also formed a joint bidding team for USDH, committing to allocating "100% net income" of USDH to Hyperliquid for platform assistance funds or HYPE token buyback.

Hyperliquid has requested institutions to submit proposals by September 10th (Wednesday), with voting scheduled for September 14th (Sunday).