Paxos Proposes Support for Hyperliquid’s USDH Stablecoin to Boost Compliance and Adoption

Stablecoin issuer Paxos has submitted a proposal to facilitate the launch of Hyperliquid's native USDH stablecoin, aiming to enhance regulatory compliance and global adoption. Under the plan, Paxos WOULD oversee worldwide distribution, ensuring alignment with the GENIUS regulatory framework. This move is expected to provide transparency and legal clarity as demand for regulated stablecoins grows.

The proposal includes a revenue-sharing mechanism designed to benefit the HYPE ecosystem, validators, and the broader protocol. Paxos also committed to using 95% of the interest earned from USDH reserves to repurchase HYPE tokens, further incentivizing participation.

Paxos' established reputation in institutional and regulatory collaboration positions it as a strategic partner for Hyperliquid's expansion. The initiative reflects the increasing convergence of decentralized finance and traditional financial oversight.