Community Pushback Emerges Against Stripe-Linked USDH Proposal

The post Community Pushback Emerges Against Stripe-Linked USDH Proposal appeared on BitcoinEthereumNews.com.

Decentralized exchange and layer-1 chain Hyperliquid’s plan to launch a proprietary stablecoin, USDH, has turned into one of the most contentious governance battles of recent years in crypto. At stake is control of a dollar-pegged token that could replace the $5.5 billion of USDC, which currently represents 95% of the platform’s stablecoin supply, and generate hundreds of millions in revenue from yields on U.S. Treasuries. The validator vote on Sept. 14 will decide who issues USDH. The contest has attracted heavyweight bidders, including Paxos, Frax as well as a coalition involving Agora and MoonPay, but the fiercest debate is over a proposal tied to Stripe’s Bridge platform. Some members of the community are warning that handing control of the exchange’s monetary layer to Stripe, which is building its own blockchain called Tempo and already controls wallet infrastructure through its Privy acquisition, would amount to ceding economic sovereignty to a competitor. Proposal: Agora stablecoin infrastructure to power USDH with a coalition of best-in-class providers. IntroductionIf Hyperliquid relinquishes their canonical stablecoin to Stripe, a vertically integrated issuer with clear conflicts, what are we all even doing? Summary-… — Nick van Eck (@Nick_van_Eck) September 7, 2025 “If Hyperliquid relinquishes their canonical stablecoin to Stripe, a vertically integrated issuer with clear conflicts, what are we even doing?” Nick van Eck, CEO and co-founder of Agora, which has a proposal in front of voters, wrote. In announcing its participation in the Agora coalition, MoonPay President Keith Grossman stressed that his payment processor holds more licenses and verified users than Stripe or Bridge, saying “USDH deserves scale, credibility and alignment – not BS capture.” Crowded field Paxos has pitched 95% of reserve earnings into HYPE token buybacks, leaning on its decade-long track record as a regulated issuer. Frax offered a “community-first” model, passing through 100% of…