Sky Co-founder: USDH Should Be Fully Decentralized at First, Then Make Necessary Adjustments to Pursue Compliance

BlockBeats News, on September 9, Sky co-founder Rune stated at the "USDH Stablecoin Roundtable" hosted by Hyperliquid that decentralization is the original intention for our participation in cryptocurrency. The fact that traditional financial systems are beginning to accept and embrace cryptocurrency by providing licenses and compliance mechanisms serves as a great bridge. We need to advance in a way that neither abandons the core advantages of decentralization nor loses the original characteristics of cryptocurrency. The approach that Sky provides to the HyperLiquid community for USDH is to initially launch a fully decentralized stablecoin. The design of decentralized stablecoins naturally comes with many protective mechanisms, which can prevent issues such as corruption or incompetence that may arise from centralized issuers, thus users are already equipped with out-of-the-box protection. However, it is clear that regulatory approval and additional clarity are still needed, which are very beneficial for meeting regulatory frameworks. Sky will let the community decide for itself how to balance between decentralization and compliance. It is entirely possible to make necessary adjustments on highly decentralized infrastructure to meet regulatory requirements.

As previously reported by BlockBeats, last Friday Hyperliquid announced the launch of a "Hyperliquid-prioritized, Hyperliquid-concept-compliant USD stablecoin," and reserved the USDH token code for this purpose. Subsequently, several stablecoin issuers, including Paxos, Frax Finance, Ethena Labs, and Agora, have quickly joined the competition for the issuance rights of the USDH stablecoin.