Paxos Unveils Enhanced Proposal for USDH Stablecoin Bid with PayPal Partnership

Paxos Labs has submitted a revised proposal to mint Hyperliquid’s USDH stablecoin, marking its second attempt to secure the contract after an initial bid in September. The updated plan introduces three key enhancements: a strategic partnership with PayPal, expanded community rewards, and global growth initiatives. "This framework ensures Paxos only wins if Hyperliquid wins," the company stated, positioning USDH as a potential gateway for decentralized finance adoption.

The PayPal collaboration stands out as the proposal’s centerpiece. Pending regulatory approval, HYPE tokens will become purchasable via PayPal and Venmo, while USDH gains frictionless on/off-ramps through the payments giant’s platform. PayPal is committing $20 million in adoption incentives and will integrate both assets into its checkout solutions, including the ‘Pay With Crypto’ feature.

Community incentives FORM the proposal’s backbone. All USDH revenue will fuel platform growth and Hyperliquid’s Assistance Fund until the protocol achieves $1 billion in total value locked. The governance model aligns stakeholder interests with the stablecoin’s long-term success.