Native Markets The Favorite For USDH Bid On Polymarket

Polymarket odds that Native Markets will win the bid for Hyperliquid’s USDH stablecoin have soared to 94.8% after Ethena Labs withdrew its application.

That’s after the odds on the popular decentralized betting platform that Native Markets will win the bid jumped over 25% in the last 24 hours.

USDH bidding odds (Source: Polymarket)

In a contract that asked which of the bidding issuers will win, traders on Polymarket also said there is a 5.2% vote that Paxos, a well-known stablecoin issuer that helped launch PayPal’s PYUSD token, will win the Hyperliquid stablecoin bid.

Ethena Labs Withdraws From USDH Bidding

The soaring confidence that Native Markets will win the Hyperliquid stablecoin bid comes after the founder of Ethena Labs, Guy Young, said his team “will respectfully be withdrawing” its proposal for the stablecoin launch.

In an X post, the founder said that the decision followed “direct discussions with individuals in the community and validators.” 

During those discussions, concerns around Ethena not being a Hyperliquid native team, Ethena’s other product lines outside of USDH, and Ethena’s ambitions that “extend beyond working with just one partner exchange,” popped up, which Young said ultimately led to the decision.

In its proposal, Ethena had said that it would make USDH 100% backed by its own USDtb stablecoin. The token is currently issued via Anchorage Digital Bank and is collateralized by BlackRock’s BUIDL fund, which the team said would give USDH institutional credibility. 

Ethena Labs had also pledged 95% of net revenue that was generated from the USDH reserves to the Hyperliquid community via HYPE token buybacks, contributions to the Assistance Fund and distributions to validators. The project also committed at least $75 million for ecosystem development and incentives. 

Before Ethena Labs withdrew its proposal, Arthur Hayes had also added to his holdings in the project’s native ENA token.

Earlier this week, he bought 1.34 million tokens for 1.02 million USD Coin (USDC), according to on-chain data cited by Lookonchain in a Sep. 12 X post. 

Arthur Hayes(@CryptoHayes) spent 1.02M $USDC to buy 1.34M $ENA again in the past 8 hours and currently holds 4.45M $ENA(3.48M).https://t.co/eSqihcbm6e pic.twitter.com/qahbRH28Sh

— Lookonchain (@lookonchain) September 9, 2025

ENA saw its price drop a fraction of a percentage in the last 24 hours as some investors likely sold after the USDh proposal was scrapped. As of 3:15 a.m. EST, ENA trades at $0.7814, according to CoinMarketCap data. Despite the minor pullback, the altcoin is still sitting on a weekly gain of more than 17%.

Crypto Community Says There Is Some Bias In Voting Process

Native Markets is a relatively newcomer in the market. It was founded by Max Fiege, who is a prominent early advocate, investor and builder within the Hyperliquid ecosystem.

Given how odds that Native Markets, even though it is a newcomer, surged, some in the crypto community argue that the USDH voting process was set up to favor the project given its founder’s ties to the Hyperliquid ecosystem.

Earlier this week, Dragonfly co-founder Haseeb Qureshi said the process was “a bit of a farce,” and added that it appeared like Hyperliquid insiders had already determined that Native Markets would win the bid.

Starting to feel like the USDH RFP was a bit of a farce.

Hearing from multiple bidders that none of the validators are interested in considering anyone besides Native Markets. It’s not even a serious discussion, as though there was a backroom deal already done.

Native Markets’… pic.twitter.com/qrc9xChv6z

— Haseeb ＞|＜ (@hosseeb) September 9, 2025

Meanwhile, OAK Research chief operating officer and co-founder Lilian Aliaga also suggested there could be some “bias at play,” and questioned how the relatively newcomer to the market was able to submit a bid so quickly after Hyperliquid first opened the USDH RFP that garnered the majority of the validator vote. 

Aliaga went on to say that he is not that confident that Native Markets would be able to “turn USDH into a multi-billion stablecoin,” adding that there seems to be a “big gap between the ambitions around USDH and what’s actually happening.” 

Native Markets co-founder Max Fiege responded to the community concerns in a recent X post. 

“We’ve spent the past six days engaging with validators and members of the community, new and old, addressing questions and concerns they had about our vision and how we’ll see it through,” Fiege wrote in the post. 

“We know we’re a new team and don’t take the burden to prove ourselves lightly,’ the co-founder added. 

You also addressed the criticism around Native Markets, and said “nobody cares how big you are, your background, pedigree or financial resources.” 

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