Ethena Withdraws from USDH Stablecoin Race: Native Markets Favored

Ethena Exits USDH Race, Native Markets Now Frontrunner

Ethena, the team behind the USDe synthetic dollar protocol, has withdrawn its proposal to issue Hyperliquid’s USDH stablecoin. This decision follows direct discussions with community members and validators, where concerns were raised about Ethena not being a native project to the Hyperliquid ecosystem.

In a statement on X (formerly Twitter), the Ethena team acknowledged the feedback and announced their decision to step aside. They congratulated Native Markets, now considered the leading contender for the USDH issuance.

Ethena Labs founder Guy Young stated, “While some are complaining about their lack of credibility (Native Markets) I think their success here perfectly embodies everything which is so special about Hyperliquid and their community... It is a level playing field where emergent players can win the hearts of the community and are given a fair shot at succeeding.”

Native Markets Positioned as Likely Winner

Ethena’s withdrawal significantly alters the landscape of the USDH bidding process. Several teams have submitted proposals to issue USDH, Hyperliquid's upcoming native stablecoin. The process highlights the community's desire for native solutions.

Prediction markets on Polymarket now indicate a 92% probability of Native Markets securing the win. Paxos is currently in second place, with approximately 7% likelihood, according to Polymarket data.

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