Crypto journalist Laura Shin dropped a bombshell in her latest Unchained Daily newsletter, highlighting a fierce bidding war among top stablecoin issuers to launch USDH on Hyperliquid. Shared via her tweet on X, this story is buzzing in the crypto community, especially for those trading meme tokens on perp DEXes.

If you're not familiar, Hyperliquid is a high-speed decentralized perpetual futures exchange built on its own layer-1 blockchain. It's become a go-to spot for traders diving into volatile assets like meme tokens, thanks to its lightning-fast execution and low fees. The platform's native token, HYPE, powers governance and captures value from trading activity. Now, with USDH—a new U.S. dollar-pegged stablecoin—set to go native on the chain, issuers are scrambling to win the rights, promising juicy perks like massive buybacks of HYPE.

The Bidding War Heats Up

Several heavyweights have thrown their hats in the ring, each with unique proposals aimed at sweetening the deal for Hyperliquid's community:

• Paxos: They're offering to allocate 95% of the interest earned from USDH reserves toward buying back HYPE tokens. Plus, they emphasize compliance with regulations like MiCA (Markets in Crypto-Assets) and GENIUS standards. Paxos co-founder Bhau Kotecha noted, “Obtain HYPE holdings to ensure community alignment.”

• Agora: Backed by a coalition including Rain, LayerZero, EtherFi, MoonPay, and Centrifuge, Agora promises a full 100% of USDH revenue going straight to HYPE buybacks. Founder Nick van Eck raised eyebrows by pointing out potential conflicts in rival bids, like Native Markets' ties to Stripe, which is eyeing its own layer-1 chain called Tempo.

Other contenders like Frax Finance and Native Markets are also in the mix, debating everything from regulatory flair to bridge integrations. The Hyperliquid community will decide via an onchain validator vote on September 14, 2025, between 10:00 and 11:00 UTC. As Syncracy Capital's Ryan Watkins put it, “The most important question for the Hyperliquid community isn’t about institutions vs natives. It’s about alignment. Who will best steward USDH?”

This competition isn't just drama—it's a game-changer. A well-backed USDH could supercharge liquidity on Hyperliquid, making it even easier to trade meme tokens without bridging assets from other chains. For HYPE holders, those buyback proposals mean potential price pumps as tokens get scooped up and possibly burned or redistributed.

Other Crypto Headlines from the Newsletter

Shin didn't stop at USDH. Here's a quick rundown of other key updates:

• Tether Squashes BTC Selloff Rumors: Tether CEO Paolo Ardoino shut down whispers of a Bitcoin dump, clarifying that transfers to Twenty One Capital (XXI) were contributions, not sales. In fact, Tether's BTC holdings grew by over 10,000 coins in Q2 2025. This is crucial for meme token traders, as Tether's USDT is the backbone of many liquidity pools.

• Kinto Shuts Down After Exploit: The Ethereum layer-2 project Kinto is calling it quits by month's end following a July hack that drained $1.6 million. An attacker exploited a smart contract bug to mint fake tokens and empty lending pools, tanking Kinto's token by 95%. The team raised funds via a "Phoenix" program but opted for a responsible wind-down, repaying victims where possible. It's a stark reminder of the risks in DeFi, especially for meme projects built on similar tech.

These stories underscore the wild ride of crypto, where innovation meets volatility. For meme token enthusiasts, Hyperliquid's rise could mean more seamless perp trading of favorites like DOGE or newer pumps, all while HYPE benefits from the spotlight.

If you're into meme tokens and want to stay ahead, keep an eye on platforms like Hyperliquid. Developments like USDH could reshape how we trade and hold value in this space. What do you think—will the buybacks send HYPE to the moon? Drop your thoughts in the comments!