{"id":10521,"date":"2025-09-12T07:30:13","date_gmt":"2025-09-12T07:30:13","guid":{"rendered":"https:\/\/bitunikey.com\/news\/ethena-withdraws-from-hyperliquids-usdh-stablecoin-issuance-competition\/"},"modified":"2025-09-12T07:30:27","modified_gmt":"2025-09-12T07:30:27","slug":"ethena-withdraws-from-hyperliquids-usdh-stablecoin-issuance-competition","status":"publish","type":"post","link":"https:\/\/bitunikey.com\/news\/ethena-withdraws-from-hyperliquids-usdh-stablecoin-issuance-competition\/","title":{"rendered":"Ethena withdraws from Hyperliquid\u2019s USDH stablecoin issuance competition"},"content":{"rendered":"<p><\/p>\n<div class=\"post-detail__content blocks\">\n<p class=\"is-style-lead\">Ethena Labs has stepped back from Hyperliquid\u2019s USDH stablecoin issuance competition after acknowledging community concerns about its position as a non-native team.<\/p>\n<div id=\"cn-block-summary-block_5390931f37ebd742eb202385024b1e4a\" class=\"cn-block-summary\">\n<div class=\"cn-block-summary__nav tabs\">\n        <span class=\"tabs__item is-selected\">Summary<\/span>\n    <\/div>\n<div class=\"cn-block-summary__content\">\n<ul class=\"wp-block-list\">\n<li>Ethena pulled its USDH stablecoin proposal after validators raised concerns about its non-native status and broader ambitions.<\/li>\n<li>The rival Native Markets team is now favored to lead stablecoin issuance on Hyperliquid.<\/li>\n<li>Ethena will pivot to building hUSDe and other native products, backed by its $13B USDe balance sheet.<\/li>\n<\/ul><\/div>\n<\/div>\n<p><!-- .cn-block-summary --><\/p>\n<p>According to a Sept. 11 <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/x.com\/gdog97_\/status\/1966137801650614362?s=46&amp;t=nznXkss3debX8JIhNzHmzw\" target=\"_blank\" rel=\"nofollow\">post<\/a> on X by Ethena (ENA) founder Guy Young, the decision follows direct conversations with validators and delegates who raised doubts over Ethena\u2019s focus and alignment with Hyperliquid\u2019s (HYPE) ecosystem.<\/p>\n<h2 class=\"wp-block-heading\">Community pushback leads to withdrawal<\/h2>\n<p>In his statement, Young highlighted three key concerns from the Hyperliquid community; Ethena\u2019s lack of native ties to the exchange, its wider product ambitions beyond USDH, and the perception that its growth strategy was not fully aligned with Hyperliquid.<\/p>\n<p>\u201cCongratulations to the Native Markets team. You deserve this,\u201d Young wrote, praising the rival proposal that has gained traction. He added that Hyperliquid\u2019s governance process demonstrated how smaller, community-driven projects could succeed regardless of pedigree or financial backing.<\/p>\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\">\n<div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">The last few days have been incredible to witness. I&#8217;ve never seen a community rally around and engage with passion like this before.<\/p>\n<p>Following direct discussions with individuals in the community and validators we have taken onboard some of the concerns, namely:<\/p>\n<p>-Ethena is not\u2026<\/p>\n<p>\u2014 G | Ethena (@gdog97_) <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/twitter.com\/gdog97_\/status\/1966137801650614362?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"nofollow\">September 11, 2025<\/a><\/p><\/blockquote>\n<\/div>\n<\/figure>\n<p>    <!-- .cn-block-related-link --><\/p>\n<p>Ethena\u2019s initial bid proposed issuing USDH through Anchorage Digital Bank\u2019s upcoming USDtb token, indirectly collateralized by BlackRock\u2019s $2 billion BUIDL fund. <\/p>\n<p>Supported by BlackRock\u2019s head of digital assets, Robert Mitchnick, and Anchorage\u2019s chief executive officer Nathan McCauley, the team argued that this structure would offer scalability and institutional-grade credibility.<\/p>\n<p>Furthermore, Ethena pledged to direct 95% of USDH reserve revenues to Hyperliquid through community funds, token buybacks, or validator rewards. Despite these assurances, validators\u2019 opinions were ultimately swayed against Ethena\u2019s bid due to concerns about centralization and its external focus.\u00a0<\/p>\n<h2 class=\"wp-block-heading\">Ethena pivots to native product development<\/h2>\n<p>Ethena\u2019s team made it clear that it is still dedicated to developing within Hyperliquid even after leaving the USDH race. Young pointed to upcoming products, including Hyperliquid-native synthetic dollars, USDe-enabled savings and card spending tools, and new derivatives such as equities-based perpetual swaps.<\/p>\n<p>The team also plans to leverage its $13 billion Ethena USDe (USDE) balance sheet to provide liquidity and expand Hyperliquid\u2019s HIP-3 markets, introducing innovations like modular prime broking and reward-bearing collateral.<\/p>\n<p>\u201cOur ambitions extend beyond working with just one partner exchange,\u201d Young said, signaling that Ethena intends to remain a key player in Hyperliquid\u2019s ecosystem despite the setback.<\/p>\n<p>The outcome marks a turning point for Hyperliquid, where local builders have been given preference by community governance over outsiders. Since Native Markets now most likely control USDH\u2019s future, the exchange\u2019s approach to stablecoin issuance could shape its risk profile and growth trajectory for years to come.<\/p>\n<p>    <!-- .cn-block-related-link --><\/p><\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Ethena Labs has stepped back from Hyperliquid\u2019s USDH stablecoin issuance competition after acknowledging community concerns about its position as a non-native team. Summary Ethena pulled its USDH stablecoin proposal after&hellip;<\/p>\n","protected":false},"author":1,"featured_media":8975,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-10521","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency"],"_links":{"self":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/10521","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/comments?post=10521"}],"version-history":[{"count":1,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/10521\/revisions"}],"predecessor-version":[{"id":10522,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/10521\/revisions\/10522"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media\/8975"}],"wp:attachment":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media?parent=10521"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/categories?post=10521"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/tags?post=10521"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}