Hyperliquid is holding a validator vote on Sunday to choose the issuer of its first native stablecoin, USDH, after hitting $330 billion in trading volume in July with just 11 employees. Ethena has withdrawn, leaving Paxos, Frax, Sky, Agora, Curve, OpenEden, and BitGo competing. Native Markets leads with a 96% chance on Polymarket.

Native Markets proposed minting USDH directly on HyperEVM and using Stripe’s Bridge for reserves. Paxos, on the other hand, aims to comply with the US GENIUS Act and EU MiCA framework, with 95% of interest directed towards HYPE buybacks. Sky plans to make USDH natively multichain via LayerZero, offering a 4.85% return on USDH. Frax Finance partners with a US bank to back USDH with tokenized US Treasurys. Agora, with VanEck as asset manager, commits 100% of net revenue to HYPE buybacks or the Assistance Fund.

Three last-minute bids from Curve, OpenEden, and BitGo were submitted, adding to the competition for USDH. The vote will be onchain with validator power determined by HYPE tokens staked, happening on Sunday. Hyperliquid Foundation and Kinetiq, controlling 63% of tokens, will abstain from voting. HYPE hit a new all-time high of $57.30 ahead of the vote.

Read more at Cointelegraph: Validators prepare to pick stablecoin issuer