Ethena Exits USDH Race as Native Markets Leads Hyperliquid’s $5.9B Stablecoin Vote

Sean Williams
Ethena Labs

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  • Ethena Labs withdrew from Hyperliquid’s USDH stablecoin issuer vote.
  • Native Markets leads the race with 91% betting odds on Polymarket.
  • Kraken may list USDH post-vote, boosting institutional adoption.

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Ethena Labs has officially withdrawn its bid to become the issuer of Hyperliquid’s upcoming USDH stablecoin. The decision, announced by Ethena’s founder on X, followed feedback from validators and community members who voiced concerns that Ethena was not a native Hyperliquid project and that its ambitions extended well beyond the USDH mandate.

Hyperliquid had opened the issuer selection through a validator vote, and Ethena’s departure now clears the path for other contenders. Native Markets has emerged as the frontrunner, receiving strong grassroots support within the Hyperliquid ecosystem.

Native Markets Gains Traction With Validator Support

Polymarket data shows traders assigning a 91% probability that Native Markets will win the validator vote. The Hyperliquid Foundation has confirmed it will align its vote with the team that receives the most non-foundation support, underscoring its commitment to a transparent, community-led process.

Polymarket
Source: Polymarket

The winning issuer will oversee a $5.9 billion stablecoin reserve currently anchored by Circle’s USDC pairs. Following the vote, Kraken is expected to list USDH alongside HYPE, which could accelerate institutional adoption and liquidity for the new token.

Ethena Doubles Down on Broader Hyperliquid Vision

Although Ethena Labs is stepping back from the USDH race, the team reaffirmed its commitment to building within the Hyperliquid ecosystem. Planned initiatives include synthetic dollar products like hUSDe, USDe-linked savings accounts, card-based spending solutions, reward-bearing collateral, and modular prime broking under the HIP-3 market design.

Also Read: Ethena’s ENA Surges With $12.6B USDe Stablecoin as Bulls Target $0.80

This pivot signals that while Ethena may not issue USDH, it aims to strengthen Hyperliquid’s broader financial infrastructure and drive deeper liquidity over time.

Outlook

With Ethena stepping aside and Native Markets gaining momentum, the validator vote on September 14 is set to determine who will shape the future of Hyperliquid’s $5.9 billion stablecoin market. The outcome could mark a defining moment for the network’s next growth phase.

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Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.

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