Consider a coquasitriangular Hopf-algebra $(H,\mu,\eta,\Delta,\epsilon, S)$ over a field $\mathbb F$ with characteristic zero and the braided monoidal category $\mathcal C$ of $H$-right-comodules. We explicitly denote the coquasitriangular form of $H$ by $r$ and its convolution inverse by $r'$. A lengthy calculation yields the result that $H$ can be "transmutated" into an Hopf-algebra object in $\mathcal C$ by considering it as a comodule algebra over itself by the coadjoint coaction and redefining its multiplication and antipode. That is: $(H,\overline \mu,\eta, \Delta,\epsilon, \overline S)$ with \begin{align*} \overline \mu &: H \otimes_\mathcal C H \rightarrow H , h\otimes g \mapsto h_{(2)}g_{(2)} r(S(h_{(1)})h_{(3)} \otimes S(g_{(1)}))\\ \overline S &: H \rightarrow H , S(h_{(2)})r(S^2(h_{(3)})S(h_{(1)}) \otimes h_{(4)}) \end{align*} and comodule structure given by \begin{align*} \delta: H \rightarrow H \otimes_\mathbb F H, h \mapsto h_{(2)}\otimes S(h_{(1)})h_{(3)} \end{align*} is a Hopf-algebra object in $\mathcal C$.
What I would be interested in is a conceptual understanding of this method and some of its properties:
- Why is the coaction set to be the coadjoint coaction ?
- Is there a general technique involved in finding the fitting multiplication and antipode?
- What properties of the original Hopf algebra are preserved? 3a) Is there a connection between the category of modules over $\overline H$ and the category of (Yetter-Drinfeld) modules over $H$?
- Can this process be iterated?
- Is this construction functorial?
This is why the coadjoint action is used. Coquasi-triangular conceptually means "almost commutative" for a Hopf algebra.
Another conceptual use of $\underline{H}$ is that it gives a way to view the Drinfeld double of Hopf algebras as a bosonozation. This, again, generalizes a result where the transmutation is not necessary for (co)commutative Hopf algebras and involves the (co)adjoing (co)action. See Majid's book [Foundations of Quantum Group Theory, Theorem 7.4.5] or the original papers.
The point of the transmutation is then to find a braided Hopf algebra $\underline{H}$ within the category of $H$-comodules such that modules over it within this category capture all $H$-comodules. This can be done and the answer is the structure you describe. $\underline{H}$ is $H$ itself as a coalgebra, but it will need this new, "transmutated" product.
$\underline{H}$ will be "braided commutative" in some sense, see Majid's book, 9.4.10.
This is a good question. I suppose not in an obvious way on $H$. What can be done is to study the Hopf algebra bosonization (Radford biproduct) $\underline{H}\rtimes H$ and then covariantize this, as it should again be dual quasi-triangular due to $\underline{H}$ is in some sense braided commutative. But this would have to be investigated more carefully.
You could look at the construction of $B(H_1,H)$ for a Hopf algebra inclusion $H_1\to H$ in Majid's book. The result is a braided Hopf algebra in $H_1$-comodules. This is not a full answer to functoriality of course, but it goes into that direction.