Stripe faces a pushback to issue Hyperliquid’s planned USDH Stablecoin to align crypto companies’ alliances, including MoonPay, Agora and Rain, to line up proposals competing alongside Paxos and Frax.
In a discrepancy message on Friday, the Hyperliquid team announced they would like to create “Hyperliquid-first, Hyperquid-Aligned and compliant USD Stablecoin” along with the USDH ticker. This was followed by the Native Market team submitting its first proposal. This will display Stripe’s Stablecoin Payment Processor, Bridge, and Issue USDH.
The Native Market proposal contributed to the Hyperliquid Support Fund Treasury Ministry of Finance, creating “meaning shares of reserves,” directly into the ecosystem and commits to complying with regulations. Still, Agora co-founder and CEO Nick Van Eck submitted an alternative proposal in opposition to the stripe-linked alternative.
“What are we doing if high liquids abandon standard stability to stripes, a vertically integrated issuer with clear conflict?” asked Van Eck. He added that Agora “strongly calls for caution to using stripes (bridges) as publishers.”
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For USDH issued bridges
Van Eck argued that the bridge has insufficient financial infrastructure and product experience, and also pointed to Stripe’s announcement of its own tempo blockchain plan as a potential conflict of interest. “Stripes are committed to promoting activity in this ecosystem,” he said.
“How long will Stripe and Bridge start pushing users and Perps from other financial applications to Tempo, instead of liquid?”
On Sunday, MoonPay president and board member Keith Grossman announced that payment processors are taking part in Agora’s proposal to issue USDH for high-rise liquids and “providing regulated payment rail to strengthen this initiative.” Like Van Eck, he sternly criticized the Native Market proposal. “USDH deserves scale, reliability and alignment, not BS capture, that is, this association, not stripes,” he said.
Rob Hadick, general partner at venture capital firm Dragonfly.xyz, shared his enthusiasm. In a post on Sunday in X, he wrote that by adding Moonpay to the Union, this was the “best unhuggable” proposal issued by USDH.
Aside from striped-linked proposals, the coalition must compete with Stablecoin publisher Paxos. On Sunday, the company also submitted a proposal to launch USDH, dictating the percentage of interest earned from the USDH reserves and pledged to redistribute Hyperliquid’s native tokens, hype, and it to users, validators and partner protocols.
Another competing proposal comes from the Frax blockchain, which promises to bring all USDH revenue (backed by FRXUSD) back to the community. “We propose something that no one else matches. Give it all back to the community,” the proposal states.
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Stubcoin is an active battlefield
The competition highlights an increase in activity in the Stablecoin sector as regulators and financial institutions intervene. HSBC and ICBC are reportedly preparing to apply for a Stablecoin license in Hong Kong, where the new framework is enabled on August 1st.
Recruitment is also moving rapidly, with Kazakhstan’s financial regulators recently allowing licenses and supervision fees to be paid in the silly stubcoin that won US dollars.
The US in Wyoming is also planning to launch Frontier Stable Token (FRNT), a stable coin approved by local governments. 1Money is a company that builds the Layer-1 blockchain for Stablecoin payments and recently announced it has secured as many as 34 US remittance licenses along with the Bermuda license.
Earlier this month, European Central Bank President Christine Lagarde called on EU lawmakers to address the gap in stable coin regulations. “(US government policy) can occur not only with further losses in fees and data, but also with euro deposits moving to the US,” said Piero Cipollone, an ECB executive committee member.
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