PayPal and Venmo Partner with Paxos to Boost USDH Stablecoin Initiative

Paxos Labs has unveiled an updated proposal for its USDH stablecoin, developed in collaboration with Hyperliquid. The revised plan emphasizes strategic integration with PayPal's payment infrastructure and Venmo's platform, marking a significant step toward mainstream adoption.

PayPal has committed $20 million in incentives to support the Hyperliquid ecosystem. The proposal outlines plans to list HYPE coin on Venmo while directing USDH revenue to Hyperliquid's growth fund—capped at 5% even if total locked assets surpass $5 billion. Regulatory alignment is prioritized, with PYUSD incorporated as a reserve asset and compliance with the GENIUS Act under discussion in the U.S.

The competitive tender process highlights Paxos' ambition to expand liquidity provision beyond retail users to institutional markets. Fintech and brokerage integrations are planned, leveraging Paxos' European regulatory authorization for coin issuance.