The issuance rights of the USDH stablecoin under Hyperliquid have attracted several institutional bidders, including Paxos and Frax, who have submitted bidding proposals.

On September 8th, according to TheBlock report, stablecoin issuers such as Paxos, Frax Finance, and Agora are vying for the upcoming issuance rights of Hyperliquid's USDH stablecoin. Hyperliquid announced this plan last Friday, stating that the goal is to launch a "USD stablecoin that is Hyperliquid-first, aligned with Hyperliquid's principles, 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, gaining the right to purchase the token code and issue the token. Paxos submitted a USDH bidding proposal yesterday, committing to providing compliance with the MiCA and GENIUS acts, supporting native deployment on HyperEVM and HyperCore, and using 95% of interest income for HYPE token buyback and redistributing the bought-back tokens to the "ecosystem plan, partners, and users." Frax proposed a "community-first" proposal, planning to peg USDH to frxUSD at a 1:1 ratio, with frxUSD supported by a BlackRock yield-generating BUIDL on-chain sovereign bond fund. Frax stated that "100% of the underlying bond yield will be distributed directly to Hyperliquid users in an on-chain programmatic manner, and Frax will not charge any fees." The current stablecoin deposits in Hyperliquid can generate $220 million in annualized yield. Agora also assembled a joint bidding team for USDH, promising that "100% of net revenue" from USDH will be allocated to Hyperliquid for the platform assistance fund or HYPE token buyback. Additionally, Ethena Labs also hinted at possibly submitting a USDH proposal on the X platform. Hyperliquid has requested that institutions submit proposals by September 10th (Wednesday), and voting will take place on September 14th (Sunday).