Ethena Labs Withdraws From USDH Stablecoin Bid: What It Means for Hyperliquid

Ethena Labs has officially withdrawn its proposal to issue Hyperliquid’s USDH stablecoin.

Founder Guy Young made the announcement on X, stating that after discussions with the community and validators, the team decided to step aside. His post reflected admiration for the passion of the Hyperliquid community, while recognizing the concerns raised about Ethena’s position.

According to Young, several issues drove the decision:

•  Ethena is not a Hyperliquid-native team.
•  The company has broader product lines outside of USDH.
•  Its ambitions extend beyond a single partner exchange.

“These are valid and we accept the pushback,” Young wrote. He confirmed Ethena will withdraw its proposal, allowing validators to shift their support elsewhere.

Community First

Young congratulated the Native Markets team for securing momentum with the community. While some critics pointed at their lack of track record, he emphasized that Hyperliquid embodies a culture where “no one gives a fuck how big you are, your background, pedigree, or financial resources.” For him, this is what makes the Hyperliquid ecosystem unique: a level playing field where emerging players can succeed.

On @HyperliquidX and $USDH – Deep dive into @withAUSD, @SkyEcosystem and @ethena_labs (now withdrawn) proposals

1️⃣ @withAUSD

Backing:

Issued through Agora’s stablecoin infrastructure, "GENIUS compliant" and licensed across global jurisdictions. Reserves backed by short-dated… pic.twitter.com/CqPx9YUBKA

— francesco (war mode)