Hyperliquid Crypto Gains VanEck Backing as USDH Stablecoin Vote Nears

Key Insights:

• VanEck CEO confirmed investment in Hyperliquid crypto and demanded respectful governance.
• Hyperliquid crypto merged exchange, blockchain, and stablecoin into one ecosystem.
• USDH stablecoin proposals close Sept. 10, with validator voting starting Sept. 14.

Hyperliquid crypto drew fresh investor attention after VanEck CEO Jan van Eck addressed its community directly. The exchange continued its rise as a profitable multi-layer platform, while USDH stablecoin proposals moved toward a Sept. 14 vote.

VanEck CEO Speaks on Community and Governance

The chief executive of VanEck, Jan van Eck, has spoken directly to the Hyperliquid community.

In his message, he praised the project’s technology, governance system, and how it was rolled out.

His post on X also confirmed that VanEck has invested in Hyperliquid for several months.

Van Eck said his team provides free research to help builders and investors. He noted that research should always include strengths and weaknesses, not positives.

According to him, the goal is to make information useful to the community and support better decision-making.

He explained that VanEck has already spoken with many HyperEVM builders. The company is looking at different ways to contribute to the project.

This could be through proposals or by adding to discussions that shape the future of Hyperliquid.

At the same time, Van Eck made it clear that his team does not like what he called “gang tackling” in discussions. He added that VanEck would not be the right partner if it allowed itself to be pushed around.

His comments show that while VanEck is open to working closely with Hyperliquid, it also wants fair treatment in community debates.

Hyperliquid Crypto Grows as Exchange and Blockchain

Hyperliquid is seen as one of the most profitable entities in the crypto sector because it brings together three key businesses.

Notably, these are the exchange itself, a blockchain system, and soon, a stablecoin. On the exchange side, Hyperliquid crypto offers both perpetual futures and spot markets.

Users could create perpetual markets without permission with a new proposal known as HIP-3.

These could include unusual trading pairs and even prediction markets. HIP-3 would move Hyperliquid beyond a regular decentralized exchange to become a wider financial layer if approved.

The blockchain part of the project is called Hyperevm. It supports smart contracts and allows activities such as money markets, DeFi projects, and NFT use cases.

This gives developers a base to build on and helps expand the ecosystem. The planned stablecoin business could add even more income.

At present, about $5.3 billion in USDC is on Hyperliquid. If that amount moves into USDH and earns around 4% annually, it could generate about $212 million in extra revenue.

That would make stablecoins a strong part of Hyperliquid’s overall business and could also affect the value of its token, HYPE.

USDH Proposals and Hyperliquid Crypto Market Response

Plans for Hyperliquid’s stablecoin, to be known as USDH, are now moving ahead. The exchange has invited issuers to submit proposals.

These will be reviewed and voted on by validators. The submission deadline is September 10, and the voting period begins on September 14.

Several well-known issuers have already shown interest. Paxos has promised to bring compliance with regulations such as MiCA and the GENIUS Act.

Paxos also suggested that up to 95% of revenues could be used for HYPE token buybacks.

The company added that it would support HYPE through its existing brokerage network, which includes platforms like PayPal and Venmo.

Another issuer, Frax, has put forward a different plan. It proposes to back USDH at a one-to-one ratio with its frxUSD stablecoin.

Frax also said that 100% of the yield from its US treasury holdings would go back to the Hyperliquid community.

The news of the USDH stablecoin has already affected the market. Since the announcement, HYPE’s price has increased by 8.7%, rising from $46.50 to $50.54.

Market watchers say that the outcome of the voting process and the choice of issuer could influence the token price further.