MoonPay, Agora, Paxos, Frax and others are challenging Stripe’s Bridge proposal to issue Hyperliquid’s USDH stablecoin, pushing for community rewards.
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Stripe is facing pushback in its bid to issue Hyperliquid’s planned USDH stablecoin, as a coalition of crypto firms, including MoonPay, Agora and Rain lined up competing proposals alongside Paxos and Frax.
In a Friday Discord , the Hyperliquid team announced it wants to create a “Hyperliquid-first, Hyperliquid-aligned, and compliant USD stablecoin” with the USDH ticker. This was followed by the Native Markets teams submitting the first , which would see , issue USDH.
Native Market’s proposal promised to contribute “a meaningful share of its reserve proceeds” to Hyperliquid’s Assistance Fund treasury, mint directly on the ecosystem and be regulatory compliant. Still, Agora co-founder and CEO Nick Van Eck an alternative proposal, arguing against the Stripe-linked alternative:
“If Hyperliquid relinquishes its canonical to Stripe, a vertically integrated issuer with clear conflicts, what are we all even doing?” asked Van Eck. He added that Agora “strongly urges caution against the utilization of Stripe (Bridge) as an issuer.”
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Against Bridge issuing USDH
Van Eck claimed that Bridge has insufficient financial infrastructure and product experience and also pointed to as a potential conflict of interest. “Stripe is committed to driving activity to this ecosystem,” he said, asking:
“How long until Stripe and Bridge start pushing users and perps from other financial applications directly to Tempo instead of Hyperliquid?“
On Sunday, MoonPay president and board member Keyth Grossman that the payment processor is joining Agora’s proposal to issue USDH for Hyperliquid and “provide the regulated payment rails to power this initiative.” Just like Van Eck, he harshly criticized the Native Markets proposal. “USDH deserves scale, credibility and alignment — not BS capture. That is this coalition, not Stripe,” he said.
Rob Hadick, general partner at venture capital firm Dragonfly.xyz, shared his enthusiasm. In a Sunday X , he wrote that the addition of MoonPay to the coalition made this the “unarguable best” proposal for USDH issuance.
Aside from the Stripe-linked proposal, the coalition must compete with stablecoin issuer Paxos. On Sunday, the firm also , promising to direct a percentage of the interest earned from USDH reserves to buy back Hyperliquid’s native token, HYPE, and redistribute it to users, validators and partner protocols.
Another competing is the one by the Frax blockchain, which promises to give all earnings of USDH — backed by its frxUSD — back to the community. “We’re proposing something no one else will match: give everything back to the community,” the proposal stated.
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Stablecoins are an active battleground
The competition underscores growing activity in the stablecoin sector as regulators and financial institutions step in. for stablecoin licenses in Hong Kong, where .
Adoption is also moving fast, with Kazakhstan’s financial regulators recently allowing license and supervision .
The US state of Wyoming also plans to launch the Frontier Stable Token (FRNT), a . 1Money, a company building a layer-1 blockchain for stablecoin payments, recently announced that it has , alongside a Bermuda license.
Earlier this month, European Central Bank President Christine Lagarde . “[The US government’s policies] could potentially result not just in further losses of fees and data, but also in euro deposits being moved to the United States,” ECB executive board member Piero Cipollone in April.
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