Paxos Proposes USDH Stablecoin to Boost Hyperliquid Ecosystem

Paxos has unveiled plans to introduce USDH, a regulatory-compliant stablecoin tailored for the Hyperliquid ecosystem. The initiative, led by Paxos Labs following its acquisition of Molecular Labs, aims to anchor Hyperliquid's growth by deploying USDH across both HyperEVM and HyperCore chains.

The stablecoin will adhere to the GENIUS Act and MiCA framework, ensuring full compliance with U.S. and EU regulations. Notably, Paxos will allocate 95% of USDH reserve interest to buy back Hyperliquid's native HYPE token, redistributing repurchased tokens to users, validators, and partner protocols.

This strategic move positions USDH as a liquidity cornerstone for Hyperliquid, aligning incentives across its decentralized infrastructure. The integration leverages Paxos' existing global stablecoin infrastructure while reinforcing Hyperliquid's position in the competitive LAYER 1 landscape.