Ethena Labs submitted a proposal on September 9 to issue Hyperliquid’s native stablecoin USDH, backed entirely by BlackRock’s USDtb stablecoin through institutional partnerships with Anchorage Digital and Securitize. The proposal commits to returning 95% of net revenue to the Hyperliquid community and includes a $75 million incentive program for market development. Competing proposals from Paxos, Frax Finance, Agora, and Sky offer alternative backing models, with the final selection requiring community governance approval and a gas auction. The transition could generate $220 million in additional annualized revenue for HYPE holders while reducing Circle’s USDC supply by 7%, leveraging Ethena’s experience managing over $23 billion in tokenized assets.
about Ethena Proposes BlackRock-Backed USDH for HyperliquidFrax Finance
0 in Finance and 0 in Crypto last weekHyperliquid Hits $55 ATH on USDH Stablecoin Proposals
Hyperliquid’s HYPE token achieved a record $55.04 price following announcements that multiple established stablecoin providers are competing to launch a native USDH stablecoin on its network. The project has received 21 proposals—including serious bids from Paxos, Frax Finance, and Agora—with voting set to begin Sunday. The new stablecoin aims to reduce Hyperliquid’s dependence on external assets like USDC and USDT while creating tighter integration within its derivatives platform. The excitement propelled HYPE to a $14.5 billion market cap, making it the 14th largest cryptocurrency. However, the process hasn’t been without controversy, with existing protocol Hyperstable alleging unfair advantages for some bidders, though others attribute the timing to recent regulatory changes from the GENIUS Act.
about Hyperliquid Hits $55 ATH on USDH Stablecoin ProposalsUS Banks Face Fines for Dropping Crypto Clients Under New Order
The White House is set to issue an executive order fining banks that discriminate against crypto companies or drop customers for political reasons, as reported by The Wall Street Journal. The order directs regulators to investigate potential violations of the Equal Credit Opportunity Act and other financial laws, with penalties including fines and consent decrees. This represents a departure from Biden-era policies under Operation Chokepoint 2.0, with the Trump administration now positioning itself as a defender of crypto against alleged banking bias. Cases like JPMorgan closing accounts of crypto executives, including Coinbase’s Brian Armstrong and Frax Finance’s Sam Kazemian, have fueled calls for reform. Banks cite anti-money laundering risks, but critics argue they oppose crypto’s decentralized nature, which challenges traditional banking control. Meanwhile, the UK recently banned a Coinbase ad criticizing its financial system.
about US Banks Face Fines for Dropping Crypto Clients Under New OrderJPMorgan Files ‘JPMD’ Trademark for Digital Asset Services
JPMorgan Chase has filed a trademark application for ‘JPMD,’ covering services related to virtual currencies, digital tokens, and blockchain-based payments. The filing includes electronic fund transfers, token trading, and custody services, hinting at a potential stablecoin initiative. This follows reports of major US banks, including JPMorgan, discussing a joint stablecoin project to compete with crypto-native issuers. Additionally, JPMorgan has begun accepting Bitcoin ETFs as loan collateral and incorporating digital assets into client net worth calculations. The bank’s moves reflect a growing institutional embrace of crypto, particularly stablecoins, which saw $4 trillion in May transaction volume. Other financial giants like Bank of America and DTCC are also pursuing stablecoin projects, underscoring the sector’s rising importance.
about JPMorgan Files 'JPMD' Trademark for Digital Asset ServicesUS Banks Challenge Tether with Joint Stablecoin Initiative
Leading US banks—JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo—are collaborating on a stablecoin project, challenging Tether (USDT) and Circle (USDC), which currently control 87% of the $245.9B market. Industry experts suggest this reflects a broader institutional shift toward crypto-native financial tools, with stablecoins becoming critical for liquidity and cross-border transactions. While Tether’s CEO welcomed the competition, analysts speculate that Circle could face pressure as banks leverage their regulatory and infrastructural advantages. The development coincides with Circle exploring strategic options, including a potential IPO or acquisition.
about US Banks Challenge Tether with Joint Stablecoin InitiativeSecuritize & Mantle Launch $400M Crypto Fund for Institutions
Securitize and Mantle launched the MI4 Fund, a $400M crypto index fund designed for institutional investors, regulated in the British Virgin Islands. The fund provides exposure to top cryptocurrencies like Bitcoin, Ethereum, and Solana, while integrating DeFi staking for additional yield. MI4’s holdings can be tokenized for transferability and used as collateral, blending TradFi and crypto innovations. Securitize further expanded its tokenization ecosystem by acquiring MG Stover’s fund administration business, managing $38B in assets, including BlackRock’s tokenized Treasury funds. The company also partnered with PlatHome in Japan to target IoT-based asset tokenization, a market projected to hit 320 trillion yen by 2030. Additionally, Securitize’s collaboration with Solana and Frax Finance highlights its role in advancing tokenized private credit and stablecoins like frxUSD.
about Securitize & Mantle Launch $400M Crypto Fund for InstitutionsFrax Finance Invests in Trump-Affiliated WLFI to Boost US DeFi Ecosystem
Frax Finance has proposed a $5 million investment in World Liberty Financial (WLFI), a DeFi platform associated with Donald Trump, aiming to enhance its presence in the “Made in USA” DeFi ecosystem. The initiative could total $10 million, contingent on the partnership’s success, and seeks to leverage WLFI’s pro-crypto stance and strategic partnerships to drive mass DeFi adoption. Additionally, Justin Sun has increased his investment in WLFI to $75 million, solidifying his role as a major stakeholder and adviser.
about Frax Finance Invests in Trump-Affiliated WLFI to Boost US DeFi EcosystemFrax Finance Considers Major Investment in Trump’s World Liberty Financial
Frax Finance’s community is evaluating a proposal to invest up to $15 million in World Liberty Financial (WLFI), a DeFi project linked to Donald Trump’s family. The initial $5 million would purchase WLFI tokens, with an additional $10 million dependent on the success of this investment.Supporters argue that this partnership could enhance Frax’s presence in the U.S. crypto market, while critics raise concerns about the high financial risks and the project’s unproven track record, likening its valuation to unsustainable levels seen during the 2021-2022 crypto boom.
about Frax Finance Considers Major Investment in Trump's World Liberty FinancialBlackRock Bitcoin ETF Concerns Highlight Risks of Centralization and Self-Custody
BlackRock’s Bitcoin ETF plan raises concerns over asset ownership and risks during protocol changes, as it may allow for the substitution of Bitcoin with less valuable tokens. The historical context of government seizures amplifies fears of centralized vulnerabilities, prompting advocates to emphasize self-custody as a means to safeguard financial sovereignty. As younger generations increasingly view Bitcoin as a financial benchmark, the importance of direct ownership over ETFs becomes crucial to preserving Bitcoin’s decentralized ethos and potential for financial autonomy.
about BlackRock Bitcoin ETF Concerns Highlight Risks of Centralization and Self-CustodyChainlink Expands Support to Seven New Cryptocurrencies Including Frax and Polymesh
Chainlink has announced support for seven new cryptocurrencies, including Frax Finance and Polymesh, enhancing its low-latency market data services. This move is part of Chainlink’s broader strategy to expand its ecosystem, further evidenced by a recent partnership with Ripple.
about Chainlink Expands Support to Seven New Cryptocurrencies Including Frax and PolymeshBlackRock BUIDL Fund Partners with Frax Finance for New Stablecoin Launch
BlackRock’s BUIDL fund has partnered with Frax Finance to support the launch of the frxUSD stablecoin, which will utilize BUIDL as a primary reserve asset. This collaboration enhances the stablecoin’s fiat redemption capabilities and regulatory compliance, while promoting transparency through on-chain transactions. With over $400 million under management, BUIDL is expanding its influence across various blockchains, positioning itself as a leader in tokenized real-world assets.
about BlackRock BUIDL Fund Partners with Frax Finance for New Stablecoin LaunchFrax Community Approves frxUSD Stablecoin Backed by BlackRock’s BUIDL Fund
The Frax community has unanimously approved the use of BlackRock’s Institutional Digital Liquidity Fund (BUIDL) as collateral for the frxUSD stablecoin, enhancing its yield-bearing potential while minimizing counterparty risk. This collaboration aims to merge blockchain technology with the stability of traditional finance, marking a significant step in the evolution of yield-bearing stablecoins. The frxUSD will be pegged to the US dollar and backed by US government securities, reflecting a growing trend towards financial products that offer rewards to holders.
about Frax Community Approves frxUSD Stablecoin Backed by BlackRock's BUIDL Fund