Ethena Labs has officially joined the contest to issue the USDH stablecoin, highlighting significant benefits for the community and institutional backing.
Ethena Labs in the Race for USDH
Ethena Labs has officially entered the race for Hyperliquid's USDH stablecoin. On September 9, 2025, they presented a proposal emphasizing substantial returns for the community and backing from major institutional partners.
Institutional Partnerships
Key players in the bid for USDH issuance include Ethena Labs, Paxos, and Frax. Ethena offers partnerships with institutions such as BlackRock, ensuring institutional-grade support for USDH. Guy Young, Founder/CEO of Ethena Labs, stated, "Our commitment to returning 95% of net reserve revenue to the Hyperliquid community underscores our focus on community engagement and ecosystem growth."
Impact on DeFi Markets
Immediate impacts may include shifts in DeFi markets, as USDC currently holds a prominent position. The migration to USDH may affect its role and liquidity. Robert Mitchnick, Head of Digital Assets at BlackRock, emphasized the significance of institutional backing, saying, "We are excited to enable Ethena’s USDtb, which is 100% backed by BUIDL and uniquely positioned to offer institutional grade cash management as well as on-chain liquidity to Hyperliquid users."
Ethena Labs' proposal, supported by institutional partners, could mark a significant shift in the stablecoin landscape, influencing liquidity and governance in DeFi.
