Sky Mavis: USDH was initially intended to be fully decentralized, with necessary adjustments made later to achieve compliance

BlockBeats News, September 9th, Sky co-founder Rune stated at the "USDH Stablecoin Roundtable Conference" held by Hyperliquid that decentralization is the original intention of our participation in cryptocurrency. The traditional financial system is beginning to accept and embrace cryptocurrency, and providing a way with licensing and compliance mechanisms is a good bridge. We need to advance in a way that does not give up the core advantage of decentralization while also not losing the original characteristics of cryptocurrency. The method that Sky provides to the Hyperliquid community for USDH is to initially launch a fully decentralized stablecoin. A decentralized stablecoin design inherently has many protective mechanisms that can prevent issues such as corruption or incompetence that may arise from a centralized issuer, thus users already have out-of-the-box protection. However, it is clear that regulatory approval is still needed, as well as additional clarity, which is very beneficial for compliance with regulatory frameworks. Sky will let the community decide how to balance between decentralization and compliance. It is entirely possible to make necessary adjustments on a highly decentralized infrastructure to meet regulatory requirements.

BlockBeats previously reported that last Friday, Hyperliquid announced the launch of a "Hyperliquid-first, Hyperliquid-aligned, and compliant USD stablecoin," and reserved the USDH token code for this purpose. Subsequently, many stablecoin issuers, including Paxos, Frax Finance, Ethena Labs, and Agora, have rapidly entered into the competition for the issuance rights of the USDH stablecoin.