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The battle to control the Hyperliquid USDH stablecoin has intensified as Rune Christensen, founder of Sky, unveiled a sweeping proposal on September 9. Writing on X, Christensen positioned Sky as the most experienced and well-capitalized candidate to oversee the asset, citing its track record with Dai (DAI) and USDS.
Sky’s proposal arrives just days before Hyperliquid validators are set to decide which issuer will manage USDH, the exchange’s native stablecoin. The validator vote is scheduled for September 14, with proposals due by September 10.
“Sky is uniquely positioned to ensure USDH is liquid, secure, and trusted at scale,” — Rune Christensen, Founder, Sky, in his X post.
The move comes as Hyperliquid’s native token, HYPE, surged to an all-time high of $51.92 following the announcement of the competition, signaling heightened interest in the Hyperliquid USDH stablecoin process.
Christensen outlined several features aimed at making Sky’s offer stand out. Chief among them is $2.2 billion in instant redemption liquidity through Sky’s Peg Stability Module, enabling users to swap USDH directly into USD Coin (USDC) at scale.
The Hyperliquid USDH stablecoin would also be designed as a multichain asset using LayerZero, expanding its interoperability across different blockchains.
Perhaps most attention-grabbing is Sky’s pledge to generate a 4.85% yield on all USDH held on Hyperliquid, higher than current U.S. Treasury bills. The proceeds from this yield would be directed toward buybacks of HYPE, aligning incentives between Sky and Hyperliquid’s ecosystem.
“Offering stable yields above traditional benchmarks could attract both institutional and retail interest, particularly at a time when investors are seeking alternatives to low-risk bonds,” — Clara Medrano, Head of Digital Assets Research, Blockworks.
Christensen emphasized that Sky’s proposal includes robust risk management frameworks modeled on Basel III banking standards. He also pointed to Sky’s unique standing as the only stablecoin issuer with an S&P credit rating, currently B-.
In addition to risk controls, Sky proposed relocating its buyback engine responsible for $250 million in annual profits to Hyperliquid. This shift would directly tie Sky’s revenue operations to the exchange, boosting liquidity and aligning the two protocols more closely.
The Hyperliquid USDH stablecoin would also be supported by a $25 million “Hyperliquid Star” ecosystem fund, aimed at bootstrapping DeFi projects and attracting billions in total value locked (TVL).
“Sky is offering not just a stablecoin, but an entire growth engine for Hyperliquid’s DeFi ecosystem,” — James Butterfill, Head of Research, CoinShares, told CNBC.
Sky’s ambitious proposal faces stiff competition. Paxos has pitched a compliance-first strategy, highlighting its integrations with mainstream payment platforms. Frax Finance has promised to return all reserve revenues directly to the community, while Agora is promoting itself as a neutral alliance of industry partners with broad support.
Each contender presents a different vision for the Hyperliquid USDH stablecoin, making the validator decision on September 14 a pivotal moment.
“Validator choices will shape the perception and adoption of USDH for years to come,” — Marcus Shaw, Senior Market Strategist, CryptoCompare.
For crypto investors, the outcome of the Hyperliquid USDH stablecoin vote carries significant implications. A Sky-led model could bring unprecedented liquidity, yield opportunities, and risk management credibility. Competitors, however, may appeal to those prioritizing compliance, decentralization, or community-first economics.
At a time when stablecoins are increasingly seen as critical infrastructure in DeFi and beyond, the decision over the Hyperliquid USDH stablecoin issuer underscores how competition is driving innovation in the sector.
As validators prepare to cast their votes, investors and analysts alike are watching closely to see which vision will define the future of Hyperliquid’s stablecoin and by extension, the next chapter of decentralized finance.
