The Hyperliquid community is weighing proposals from a number of stablecoin issuers proposing to build a U.S.dollar-pegged stablecoin native to Hyperliquid called USDH.

Among the contenders are Frax Finance, Agora, Native Markets and even Paxos, which proposed spending 95% of interest earned to buy back Hyperliquid’s native token HYPE.

Paxos offered MiCA and GENIUS compliance, with cofounder Bhau Kotecha saying the firm also plans to “obtain HYPE holdings to ensure community alignment.”

But the regulated trust company didn’t necessarily edge out the competition.A proposal from Agora founder Nick van Eck suggested a coalition-based infrastructure behind USDH was the “obvious choice,” and committed to sharing 100% of revenue earned from USDH to fund HYPE buybacks.

This story is an excerpt from the Unchained Daily newsletter.

Agora’s coalition partners include Rain, LayerZero, EtherFi, MoonPay and Centrifuge. 

Van Eck urged particular caution against Native Markets’ proposal to utilize Stripe’s Bridge as USDH’s issuer, citing a conflict of interest from Stripe’s newly announced plans for a layer 1 blockchain Tempo.

“After thinking about USDH more, I realize the most important question for the Hyperliquid community isn’t about institutions vs natives. It’s about alignment. Who will best steward USDH?” commented Syncracy Capital founder Ryan Watkins. 

“Expecting a lot more details and new players to enter the picture in the coming days. Exciting times for Hyperliquid.”

Hyperliquid said on its official Discord channel that the USDH ticker will be assigned via an onchain validator vote that will take place between 10:00 and 11:00 UTC on Sept. 14.