Stablecoin Issuers Compete for Hyperliquid’s USDH

Hyperliquid announced that stablecoin issuers Paxos, Frax Finance, Agora, and Native Markets submitted bids to issue its planned USDH token. The decentralized exchange, which holds $5.5 billion in USDC deposits, will decide the winner through a validator vote scheduled for September 14.

Paxos Labs, active since 2018, proposed MiCA and GENIUS Act compliance, native deployment across HyperEVM and HyperCore, and 95% revenue allocated to HYPE buybacks. Paxos emphasized zero-fee migration from USDC to USDH, pledging to seed automated market maker liquidity and integrate HYPE into its brokerage infrastructure.

Frax Finance offered a “community-first” proposal, promising USDH backed 1:1 by frxUSD, which itself is collateralized by BlackRock’s BUIDL Treasury fund. Frax committed to forward 100% of yield, estimating Hyperliquid users could earn $220 million annually from 4% Treasury returns.

Agora partnered with Rain and LayerZero, pledging USDH backed by cash and Treasuries in State Street reserves and 100% net revenue share. Native Markets, led by former Uniswap COO MC Lader, promised Stripe-owned Bridge integration, though users flagged potential conflicts with Stripe’s Tempo blockchain project.

Urgent: Global Hack Puts All Crypto Wallets at Risk

Hackers have compromised core JavaScript libraries in what experts are calling the largest supply chain attack to date. Popular packages like chalk and strip-ansi were secretly infected with malware, exposing billions of weekly downloads to risk. The malicious code targets crypto transactions, secretly replacing wallet addresses to divert funds to attackers’ controlled wallets.

Security researchers warn that even developers who never directly installed the compromised libraries may be unknowingly affected. Since these utilities are embedded in countless dependency trees, their reach extends across the entire JavaScript ecosystem. Hardware wallets remain the safest option, as they require confirmation of each transaction, reducing the risk of silent interception.

Nasdaq Requests SEC Approval for Tokenized Stocks

Nasdaq filed with the SEC to allow stocks and ETFs to be recorded in tokenized form. The exchange said participants could choose tokenized settlement by selecting a designated flag when submitting orders. Officials emphasized tokenization would retain existing regulatory protections while enabling faster, blockchain-backed clearing and settlement systems.

Nasdaq’s move comes amid growing momentum for asset tokenization across both traditional finance and crypto firms. Robinhood recently launched tokenized US equities in Europe, while Kraken announced a Solana tokenization partnership. Executives argue tokenized RWA markets can expand access, improve efficiency, and modernize capital markets without undermining investor protections already mandated by law.

Forward Industries Raises $1.65B for Solana Treasury

Forward Industries secured $1.65 billion in cash and stablecoin commitments to build a Solana-focused institutional treasury. The PIPE funding round was led by Galaxy Digital, Jump Crypto, and Multicoin Capital, with Cantor Fitzgerald advising. Company shares surged 128% in pre-market trading, while Solana’s price rose modestly after the announcement.

Executives said the funds will drive on-chain participation and shareholder value through active Solana DeFi engagement. Competing treasury firms like Upexi and Sharps Technology have also built nine-figure Solana holdings this year. Forward plans to leverage Galaxy’s infrastructure expertise and Multicoin’s investment leadership, positioning itself as a leading Solana institutional player.

Germany May Have Missed $5B Bitcoin Seizure

Arkham analysts reported that German police overlooked 45,000 Bitcoin tied to piracy site Movie2K wallets. Authorities previously seized nearly 50,000 BTC in January 2024, later selling the assets before prices doubled. Arkham said the additional holdings remain untouched since 2019, spread across more than one hundred wallets.

Germany netted $2.8 billion from its earlier sales but missed billions more due to premature liquidation. Prosecutors argued they were legally required to sell quickly to limit risk of value loss. Officials must now prove these remaining funds are illicit before attempting seizure, a process requiring judicial verification of ownership.

Data of the Day

Google Trends data shows US search interest for “Bitcoin” has fallen to its lowest level in eleven months. Analysts linked the decline to gold’s sharp rise, with the metal up 38% compared to Bitcoin’s 18%. Experts said the divergence reflects investors’ preference for safety amid uncertainty, with gold favored over speculative assets.

Bitcoin has stagnated near $111,500 since May, while gold hit $3,613 per ounce this week. Analysts said gold’s lead-lag pattern historically precedes stronger Bitcoin rallies, suggesting possible upside if conditions align. Forecasts place Bitcoin between $120,000 and $200,000 in 2025, contingent on rate cuts, BTC ETFs, and macroeconomic catalysts.

More Breaking News

• Tether denied Bitcoin sell-off rumors, confirming it transferred 19,800 BTC to Twenty One Capital (XXI) while increasing exposure to gold, land, and hard assets.
• Robinhood was added to the S&P 500 index while MicroStrategy was skipped again, signaling a preference for diversified fintech over asset holding.
• MegaETH launched its USDm stablecoin with Ethena, redirecting reserve yield to cover sequencer fees and sustain low costs across network operations.
• Bybit resumed full crypto services in India after regulatory clearance, paying a $1 million fine and registering with India’s anti-money laundering agency.
• Justin Sun’s stablecoin USDD launched natively on Ethereum with new DeFi features, including yield-earning sUSDD and a stability module for zero-slippage swaps.
• Backpack opened a regulated crypto derivatives exchange in Europe following its acquisition of FTX EU, offering perpetual futures with full MiFID II compliance.
• Do Kwon lost a $15.1 million down payment on a Singapore penthouse after failing to complete the purchase amid legal and criminal troubles.
• El Salvador celebrated four years of Bitcoin adoption, touting education programs and a national BTC reserve, but scaled back policy under IMF loan terms.

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