Stripe Faces Industry Revolt in Bid to Issue USDH

Payments giant Stripe is pushing to make its Bridge platform the issuer of USDH, a dollar-backed stablecoin designed specifically for the Hyperliquid ecosystem. The plan, pitched through Native Markets, promised compliance, direct minting on-chain, and a revenue stream directed into Hyperliquid’s treasury — a package meant to reassure both regulators and the community.

Backlash From Crypto Natives

Instead of quiet acceptance, Stripe’s offer sparked immediate resistance. Agora CEO Nick Van Eck accused the company of overreach, warning that a vertically integrated issuer with its own blockchain ambitions could steer liquidity away from Hyperliquid over time. His criticism was sharp: handing Stripe control of the ecosystem’s canonical stablecoin, he argued, would be “a capture, not an alignment.”

Rivals Line Up

That skepticism turned into a coalition. MoonPay quickly joined forces with Agora, with executives blasting Stripe’s proposal as misaligned with the long-term interests of Hyperliquid. Venture firm Dragonfly also endorsed the coalition, calling it the best option on the table.

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Meanwhile, Paxos and Frax — both seasoned stablecoin players — put forward competing blueprints. Paxos promised to recycle reserve income into buybacks of Hyperliquid’s HYPE token, redistributing value to users and validators. Frax went further, pledging to return all USDH revenue to the community, setting itself apart with a maximalist “give-back” approach.

A Wider Stablecoin Arms Race

The fight over USDH doesn’t exist in a vacuum. Governments and corporations worldwide are racing to shape the future of dollar-backed tokens. Hong Kong is rolling out licenses that banks like HSBC and ICBC are preparing to seize. Wyoming is preparing its own state-backed stablecoin, and in Europe, regulators are warning that dollar tokens could siphon liquidity away from euro deposits.

Why This Matters

Hyperliquid’s decision won’t just decide who issues USDH. It will also send a signal about whether crypto-native alliances or fintech heavyweights get to dictate the next chapter of stablecoin growth. For Stripe, it’s a chance to cement a foothold in decentralized finance. For its rivals, it’s about protecting the community from ceding too much power to a traditional payments giant.

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