MoonPay and Competitors Challenge Stripe in Launch of Hyperliquid’s USDH Stablecoin
, a top decentralized platform and layer-1 blockchain, is about to introduce its own USDH stablecoin. This has sparked considerable controversy in the cryptocurrency industry regarding its governance.
The platform around 80% of the DeFi derivatives market and aims to replace the $5.5 billion in USDC, which makes up the majority of its stablecoin supply. The Block confirmer vote on September 14, 2025, will decide which organization issues USDH. This is a significant development because U.S. Treasury rates are closely tied to a substantial amount of money.
Stripe’s Bridge Faces Strong Opposition
Native Markets’ Stripe’s Bridge platform has become a controversial candidate to issue USDH. The states that a portion of the reserve income will be allocated to Hyperliquid’s Assistance Fund and that it will adhere to all applicable rules.
Critics, such as Agora CEO Nick van Eck, argue that Stripe’s development of its own , Tempo, and its control over wallet infrastructure through the acquisition of Privy create conflicts of interest. Van Eck states that granting Stripe control over USDH could compromise Hyperliquid’s economic independence.
The Coalition Push from MoonPay and Agora
has partnered with Agora, Rain, LayerZero, EtherFi, and Centrifuge to propose a USDH issuance that prioritizes community engagement. Keith Grossman, the president of MoonPay, stated that the company holds numerous licenses and has a large number of verified users, surpassing what Stripe can achieve.
The alliance promises to allocate all of its net income to repurchase HYPE tokens or invest in Hyperliquid’s Assistance Fund, with ecosystem alignment as its top priority. Rob Hadick from Dragonfly.xyz this alliance was the “unarguable best” choice because of its size and trustworthiness.
Paxos and Frax Join the Fight
Paxos, a long-time issuer of stablecoins, has proposed allocating 95% of USDH reserve revenues to repurchase Hyperliquid’s token and distributing it to users, Block confirmers, and partner protocols. Paxos has been in the regulatory business for ten years and places a strong emphasis on adhering to U.S. and EU regulations.
Frax, on the other hand, has a “community-first” approach that promises to give back 100% of USDH revenues to Hyperliquid’s community, backed by its frxUSD. Both plans aim to reduce the need for stablecoins from external sources, including USDC and USDT.
What This Means For Hyperliquid’s Ecosystem
The launch of USDH could change Hyperliquid’s financial structure by moving hundreds of millions of dollars in revenue from USDC to the platform’s community. The competition shows that there are many ideas about what USDH should do.
MoonPay has various methods for integrating fiat money into the system, Paxos is well-versed in regulations, and Frax has a model for sharing yields. The outcome of Hyperliquid’s Block confirmer vote will impact both its stablecoin layer and the broader DeFi landscape.
