Hyperliquid, a decentralized exchange for perpetual futures, is set to hold a validator vote on Sunday to choose the issuer of its first native stablecoin, USDH. This vote comes just a week after the company opened a contest for issuers, quickly making it a significant decision in the stablecoin industry. USDH aims to serve as a dollar-pegged asset for traders within the Hyperliquid ecosystem. The competition includes various contenders such as Native Markets, which has received early support for its innovative reserve management plan, and Paxos, which emphasizes regulatory compliance and prior experience in stablecoin management. Other competitors include Sky, Frax Finance, and Agora, each presenting unique proposals and strategies. The voting process is entirely on-chain, requiring a two-thirds majority to pass. This landmark decision could determine which firm will control stablecoin flows within the Hyperliquid platform and influence the market significantly. As the vote approaches, the native token HYPE has seen a rally, hitting an all-time high just prior to the vote.

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