Ethena’s Proposal to Launch USDH Stablecoin for Hyperliquid Ecosystem Expansion

Ethena ($ENA), the issuer behind the USDe stablecoin, has submitted a comprehensive proposal to the Hyperliquid ($HYPE) community, seeking to become the designated issuer of Hyperliquid’s native stablecoin, USDH. This initiative is part of Ethena’s larger vision to not only issue stablecoins but also foster a symbiotic partnership aimed at accelerated growth throughout the Hyperliquid ecosystem. As part of its commitment, Ethena has promised to reinvest the majority of its revenue back into the Hyperliquid community.

USDH’s Operational Framework and Economic Value Proposition

Ethena has proposed that USDH would initially be fully collateralized by USDtb, a regulatory-compliant stablecoin backed by ‘BUIDL,’ a tokenized fund managed by BlackRock, the world’s largest asset management firm. As of October 1, USDtb transitioned its issuance to Anchorage Digital Bank, making it the first payments-centric stablecoin compliant with the U.S. GENIUS Act.

The economic model for USDH focuses heavily on delivering sustained value to the Hyperliquid community. Ethena has committed to returning at least 95% of net income generated from USDH reserves to the ecosystem. This revenue will be distributed in two ways: through HYPE token burns or by redistributing the income among HYPE stakers and validators, creating a robust circular economy designed to underpin ecosystem growth.

Governance with Decentralized Oversight

Ethena’s proposed governance framework for USDH places emphasis on decentralization to reduce the risks of over-centralization. The core of this framework involves the creation of a “Guardian Network,” a network of elected validators within the Hyperliquid ecosystem. These validators would have the authority to oversee USDH’s operational stability and make critical decisions, such as freezing or reissuing assets during emergencies, without requiring direct intervention from Ethena. By shifting these controls to a decentralized body, the model enhances USDH's security and stability.

Holistic Ecosystem Expansion Strategy

Beyond issuing USDH, Ethena has outlined a multi-faceted strategy designed to drive long-term growth for Hyperliquid. These initiatives include:

Major Financial Commitments

Ethena has pledged $75 million (approximately 104 billion KRW) in direct cash and tokenized incentives to support HIP-3 front-end projects that integrate products like USDe and hUSDe. This funding is aimed at fostering broader adoption through development and integration at multiple touchpoints.

Introduction of hUSDe

To solidify market liquidity within Hyperliquid, Ethena is partnering with Liminal—a delta-neutral protocol native to Hyperliquid—to launch hUSDe, a synthetic dollar tailored for Hyperliquid markets. This new stable asset is engineered to stabilize funding costs, enabling deeper liquidity and more resilient trading environments.

Institutional Partnerships to Boost Adoption

In the event that Ethena becomes the issuer of USDH, the company plans to onboard Securitize, a leader in real-world asset (RWA) tokenization, to deploy its platform on HyperEVM. Additionally, Anchorage Digital Bank aims to list USDtb natively on HyperEVM. These partnerships would facilitate the entry of institutional-grade tokenized assets and equities into the Hyperliquid ecosystem, further legitimizing its financial infrastructure.

Support for Emerging Markets

Ethena has presented its intention to leverage its $13 billion balance sheet to act as a liquidity provider for new and emerging markets within Hyperliquid. This includes supporting the development of perpetual equity contracts and other novel financial products, ensuring Hyperliquid consistently attracts market participants.

Positive Industry Reception

Ethena’s proposal has already gained notable endorsements from major industry stakeholders.

Robert Mitchnick, Head of Digital Assets at BlackRock, stated:
“We are thrilled that Ethena’s USDtb, backed 100% by BUIDL, can provide institutional-grade cash management and on-chain liquidity to Hyperliquid users.”

Nathan McCauley, CEO of Anchorage Digital Bank, added:
“We are pleased that Ethena’s USDtb will collaborate with the Hyperliquid community to deliver a sovereign stablecoin designed to aid ecosystem growth.”

A Future Beyond USDH

Ethena clearly communicated that their commitment to Hyperliquid goes well beyond the immediate goal of becoming the USDH issuer. Their broader ambition is to establish themselves as a strategic partner deeply invested in all facets of Hyperliquid’s success. This partnership-centric vision reinforces Ethena’s role as more than just a technology provider, positioning the company as a long-term catalyst for Hyperliquid’s growth.

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