In the fast-paced world of crypto, Hyperliquid is making waves as one of the most influential platforms out there. Recently, a thread from Ryan Watkins, co-founder of Syncracy Capital and former Messari researcher, highlighted the frenzy among stablecoin issuers vying to partner with Hyperliquid for their upcoming USDH stablecoin. It's a spectacle that's hard to ignore, showing just how powerful Hyperliquid has become in the cryptoeconomy.

For those new to the scene, Hyperliquid is a decentralized exchange (DEX) focused on perpetual futures, or "perps," built on its own blockchain called HyperCore. Stablecoins, like USDC or Tether, are cryptocurrencies pegged to stable assets like the US dollar, providing a reliable medium for trading without the volatility of other cryptos. USDH is set to be Hyperliquid's native stablecoin, potentially replacing USDC as the go-to collateral for margin trading on the platform.

Watkins points out that every major stablecoin issuer scrambled over the weekend to pitch their services. Basics like regulatory compliance and revenue sharing are now just table stakes – everyone offers that. Even swapping out USDC for USDH as collateral is low-hanging fruit. The real competition? Who can paint the most compelling picture for USDH's growth beyond just being margin on HyperCore.

Hyperliquid's vision isn't limited to a simple perps DEX. They're aiming for the "Chain to House All Finance" – a blockchain that could underpin a vast array of financial services. To win this partnership, issuers need to show how they'll propel USDH to become one of the world's largest stablecoins, expanding its use cases far and wide.

Diving deeper, Watkins explores a key dilemma: Should USDH be launched by a Hyperliquid-native team or a big-name blue-chip institution (or even a consortium of them)?

Opting for an established player derisks the whole operation. These giants bring regulatory expertise, broad distribution networks, and hefty resources to the table. They could help Hyperliquid navigate complex legal landscapes and attract more institutional players. However, there's a catch – USDH might never be their top priority amid their sprawling portfolios.

On the flip side, a native team carries more risk but promises tighter alignment with Hyperliquid's goals. It would essentially add another dedicated contributor to the ecosystem, with laser-focused efforts on expansion. This could unlock USDH's full potential, driving aggressive growth tailored to Hyperliquid's needs.

Watkins leans toward the blue-chip route. Launching a product this crucial demands caution – you don't want to mess it up. Plus, involving reputable institutions could balance Hyperliquid's grassroots, anonymous-driven culture, making it more appealing to traditional finance folks. That said, he wants to see these big players demonstrate real commitment to the ecosystem before handing over the reins.

This discussion sparked reactions, like one user wondering why Hyperliquid isn't launching USDH in-house. It's a fair question – keeping it internal could maximize control, but it might stretch their resources thin or expose them to regulatory hurdles they're not equipped for yet.

As Hyperliquid evolves, decisions like this will shape the future of DeFi. If you're in blockchain, keeping an eye on USDH could reveal the next big shifts in stablecoin dominance. For more on the original thread, check it out here.