Sky taps $8B balance sheet to back Hyperliquid’s USDH stablecoin

Crypto giant Sky has joined the race to launch Hyperliquid’s USDH stablecoin with a plan that brings strong liquidity, multi-chain access, and steady returns for the Hyperliquid ￰0￱ is using its $8 billion balance sheet, seven years of security, and an S&P credit rating to position USDH as a new standard in the stablecoin ￰1￱ Sky Frontier Foundation said the proposal will make USDH work the same way as Sky’s other stablecoins, DAI and USDS, while linking it directly to Hyperliquid’s trading ￰2￱ plan focuses on clear transparency, easy-to-check collateral, and strong risk controls built on banking ￰3￱ uses its stablecoin system to support Hyperliquid Sky (formerly known as MakerDAO) has over $8 billion of its USDS stablecoin in ￰4￱ is secured by over $13 billion in collateral, comprised of crypto assets and real-world financial instruments like ￰5￱ ￰6￱ Sky Frontier Foundation wants to link Sky with Hyperliquid by creating the USDH ￰7￱ the proposal is accepted, the coin will take over the same framework as Sky’s current stablecoins DAI and ￰8￱ these two coins have been used for over seven years without any reported losses for holders, even during huge market downturns, Sky has grown a resilient reputation that others can’t ￰9￱ Hyperliquid, USDH can access Sky’s Peg Stability Module (PSM) and its immediate USDC liquidity of $2.2 ￰10￱ this, users can redeem huge amounts of USDH without delays or ￰11￱ billions also prove that anyone can exchange USDH for a stable ￰12￱ the same time, USDH will operate across multiple blockchains through LayerZero technology without depending on third-party ￰13￱ way, users can easily and safely interact with different ￰14￱ users who own USDH will also enjoy returns of 4.85% from Sky’s large balance ￰15￱ returns are currently higher than the rate paid on ￰16￱ ￰17￱ makes over $250 million in profits annually, and part of it goes toward buying back SKY tokens on platforms like ￰18￱ will help support the tokens’ value and ensure investors and traders have enough confidence in the protocol.

However, under the new proposal, this buyback engine will migrate to Hyperliquid to boost trading activity for the SKY token within the ￰19￱ grows faster with the USDH launch Sky wants to spend $25 million to create a new engine inside Hyperliquid’s ecosystem called “Hyperliquid Genesis Star.” This project takes after Spark and Grove, two large autonomous projects already operating within Sky’s network and managing more than $6 billion worth of ￰20￱ proposal also explains that USDH would allow the Hyperliquid community to change any important features, like the types of collateral that back the coin and the level of risk controls built into the ￰21￱ solid track record that Sky has built over the past seven years will make both Hyperliquid’s users and outside investors more confident in ￰22￱ is also the only stablecoin issuer to have earned an official credit rating from S&P Global, a B- rating in August ￰23￱ score may seem low compared to investment-grade ratings, but a global rating agency reviewed Sky’s operations and gave a formal score, which is a big ￰24￱ shows the world that Sky’s project is transparent, large, and well-documented enough to be evaluated using the same standards as traditional financial institutions.

Meanwhile, stablecoin issuer Paxos proposed to the SEC on Saturday that it support the launch of USDH on HyperEVM and ￰25￱ to Cryptopolitan , Paxos highlighted its adherence to the ￰26￱ Act, Europe’s MiCA, and regulations in APAC, the Middle East, Latin America, and ￰27￱ firm added that its international compliance footprint and linkages to banking would enable Hyperliquid to grow from a crypto-native economy to a financial platform serving a global user ￰28￱ your project in front of crypto’s top minds? Feature it in our next industry report, where data meets impact.