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Welcome to the Token Metrics Research | Daily newsletter, where we cover key market movements, regulatory updates, and early alpha for our readers and investors.
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In Today's Edition
Hyperliquid USDH Auction Heats Up
Markets Rally Amid Fed Uncertainty
Vietnam Approves Crypto Pilot Program
Ethereum Leads Tokenized Assets Boom
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Now let's get back to the top stories of the day.
1. Hyperliquid USDH Auction Heats Up
As Hyperliquid prepares to launch its native stablecoin USDH, a fierce bidding war has erupted among major issuers, underscoring the platform's growing dominance in DeFi perpetuals and the lucrative potential of stablecoin issuance.
With Hyperliquid's TVL surpassing $2.67B and annual revenue approaching $1B, migrating its $5B in USDC deposits to USDH could generate an additional $200M yearly yield, benefiting Circle.
Proposals poured in ahead of the September 10 deadline, with validators set to vote starting September 14, the Hyperliquid Foundation will abstain to ensure neutrality.
Key bids include:
Paxos V2: Partners with PayPal for USDH integration into checkout, payments, Venmo, and on/off-ramps at no cost. Commits $20M in incentives to the HYPE ecosystem, caps revenue share at 5% post-$5B TVL, and reinvests 95% of yield into HYPE buybacks until $1B TVL. Emphasizes global compliance (MiCA, MAS) and enterprise liquidity via HIP-3.
Ethena: Backs USDH with USDtb (BlackRock-tied), offers 95% revenue return, and pledges $75–150M in incentives. Builds on their recent Binance integration for USDe, positioning for CEX-DeFi synergy.
Frax: Proposes 100% yield to users via frxUSD (backed by BlackRock's BUIDL), focusing on DeFi-native design and neutrality.
Agora/Rain/LayerZero: 100% net revenue to HYPE/ecosystem, backed by VanEck/State Street; emphasizes cross-chain bridges.
Sky (ex-Maker): 4.85% yield, $2.2B liquidity, $25M fund for growth.
Native Markets: Stripe integration, 50% yield to buybacks/50% development.
This auction highlights a tension between institutional-grade compliance (Paxos, Frax) and DeFi-native innovation (Ethena, Sky). Paxos edges ahead with PayPal's distribution muscle, potentially onboarding millions via fiat rails, but Native Markets' Stripe play could appeal for seamless onramps. HYPE token surged to $55 ATH amid hype, reflecting market bets on ecosystem growth.
2. Markets Rally Amid Fed Uncertainty
Crypto markets showed resilience this week, with Bitcoin reclaiming $112K and Solana hitting a 7-month high of $222, as economists tempered stagflation fears despite downward job revisions.
BTC's calm (volatility at multi-month lows) masks tension ahead of September 11 CPI (forecast 2.9% YoY) and the Fed's September 17 rate decision. Markets price 91% odds for a 25bps cut, per CME FedWatch.
Asia-Pacific sentiment remained buoyant, with Bitcoin trading in a tight $110K to $113K range, while ETH hovered at $4.3K with modest ETF flows. Gold's record highs signal safe-haven rotation, potentially spilling into crypto if cuts materialize.
September macros are pivotal, weak jobs heat up cut expectations, but persistent 3% inflation may force a "3% is the new 2%" mindset. Crypto's correlation with equities suggests rotation from money markets into BTC/ETH if yields fall.
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Now, let's continue with the top stories of the day.
3. Vietnam Approves Crypto Pilot Program
Vietnam has greenlit a five-year pilot program for digital asset trading, effective immediately. This marks a cautious pivot from its 2018 crypto payment ban toward regulated adoption.
Restricted to Vietnamese LLCs or joint-stock firms with 10T dong ($379M) capital (65% institutional), the program caps foreign ownership at 49% and mandates VND-only trades with strict KYC/AML.
Sandboxes in Da Nang and Ho Chi Minh City will test innovations. From January 2026, crypto will be fully recognized as an asset, not legal tender.
Post-six-month transition, unlicensed trading faces bans for citizens. Dunamu (Upbit) partnered with Military Bank to launch tech support and signaling exchanges. Vietnam ranks 4th in Chainalysis' 2025 adoption index, with 69% YoY on-chain growth in Asia-Pacific.
This aligns with Vietnam's FATF compliance push and blockchain NDAChain for IDs/smart contracts. For investors, this could unlock $10B+ inflows, boosting regional liquidity.
4. Ethereum Leads Tokenized Assets Boom
Ethereum has solidified its dominance in tokenized real-world assets (RWAs), capturing 70–90% market share with $8.3B+ in on-chain assets excluding stablecoins.
Stablecoins exceed $165B on ETH (50%+ global), tokenized gold hits $2.4B, and treasuries claim 70%+ via BlackRock's BUIDL and Fidelity's FDIT ($200M+ in weeks).
ETH's neutrality and developer ecosystem outpace Solana ($500M RWAs) and Polygon. Corporate treasuries hold 4% of the ETH supply, signaling institutional conviction. The price has risen 200% since April, briefly reaching $5K. LeanVM positions ETH for the post-quantum era, potentially slashing ZK costs 10x.
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