Ethena Labs announced its intention to become the issuer of the Hyperliquid stablecoin by announcing its intention to join the USDH campaign on Tuesday, TechFlame reports. Currently, this decentralized exchange and Tier 1 network mainly relies on Circle's USDC and Tether's USDT0, but the Hyperliquid community is seeking a stablecoin proposal “highly compatible with Hyperliquid” as an alternative. Stablecoin issuer Paxos and World Liberty Financial, a decentralized finance project supported by US President Donald Trump, have submitted proposals. And Ethena's proposal emphasizes that its support will also combine the strength of partners. Ethena showcased partnerships with Anchorage Digital (a federally chartered digital asset bank) and Securitize (a real-asset tokenization company backed by BlackRock). Anchorage is responsible for issuing Ethena's USdTB stablecoin, which is backed by BlackRock's tokenization fund BUIDL. Robert Mitchnick, head of digital assets at BlackRock, said in the proposal: “We're excited to have Ethena's USdTB connected to Hyperliquid. USdTB is 100% supported by BUIDL and provides institutional-grade cash management as well as on-chain liquidity for Hyperliquid users.” According to Ethena's proposal, USDH will initially be backed by USdTB, thereby indirectly receiving support from BlackRock's BUIDL Fund, a $14 trillion asset management giant. At least 95% of the proceeds from the USDH reserve will be distributed to Hyperliquid's “aid fund” and used to buy back HYPE tokens and allocations to validators.