Paxos Proposes SEC Support for Hyperliquid’s USDH Stablecoin Launch

Stablecoin issuer Paxos has submitted a proposal to the U.S. Securities and Exchange Commission seeking regulatory approval for Hyperliquid's USDH stablecoin. The dollar-pegged asset will launch simultaneously on HyperEVM and HyperCore, with Paxos handling global distribution under compliance frameworks including the GENIUS Act and MiCA regulations.

The partnership aims to leverage Paxos' banking infrastructure and regulatory expertise to transform Hyperliquid from a crypto-native platform into a global financial ecosystem. A unique revenue-sharing model will allocate USDH yields toward HYPE token buybacks, validator incentives, and protocol development.

Paxos emphasizes this collaboration aligns with its mission to bridge traditional finance with blockchain technology while maintaining enterprise-grade compliance. The proposal comes as Hyperliquid continues demonstrating exponential growth in derivatives trading volume and user adoption.