Paxos Unveils USDH V2 Proposal with PayPal Integration for Global DeFi Expansion

Paxos has introduced an upgraded proposal to issue Hyperliquid's USDH stablecoin, positioning itself as a frontrunner in the competitive stablecoin market. The V2 plan hinges on a strategic partnership with PayPal, embedding USDH into its global payment infrastructure. This integration includes free on- and off-ramps via PayPal and Venmo, with support across Checkout, Braintree, Hyperwallet, and Xoom.

Leveraging PayPal's network of 400 million accounts and 35 million merchants, the proposal aims to eliminate conversion fees and streamline decentralized finance access. "Paxos USDH Proposal V2 delivers three major upgrades to unlock Hyperliquid at global scale," the plan states, framing USDH as a potential gateway stablecoin for mass DeFi adoption.

The economic model ties Paxos' revenue to Hyperliquid's growth, capping fees at 5% and triggering them only upon reaching TVL milestones. All fees will be paid in HYPE tokens, deepening the stablecoin's integration within Hyperliquid's ecosystem. The proposal also outlines enhanced incentive structures to align stakeholder interests.