Paxos to Launch Hyperliquid’s First Stablecoin USDH

Highlights:

• Paxos unveils USDH stablecoin, adhering to U.S. GENIUS Act and Europe’s MiCA.
• 95% of the USDH reserve interest will buy back HYPE tokens for redistribution.
• Paxos aims to expand Hyperliquid adoption globally, bridging crypto users and institutions.

Stablecoin infrastructure firm Paxos filed a proposal with the United States Securities and Exchange Commission (SEC) on Saturday to launch USDH, marking Hyperliquid’s first stablecoin. The company emphasizes that USDH will adhere to international regulations, including the U.S. GENIUS Act, Europe’s MiCA framework, and compliance standards across APAC, the Middle East, Latin America, and Africa. The new token is set to operate on both HyperEVM and HyperCore networks.

“We propose the launch of USDH, a Hyperliquid-first, fully compliant stablecoin purpose built to drive adoption, align incentives, and anchor the ecosystem’s next era of growth,” Paxos wrote. The statement revealed that 95% of earnings from USDH reserves will be allocated to repurchasing Hyperliquid’s native HYPE token. Paxos will continue to maintain high-quality reserves, including T-Bills, Repos, and USDG, to ensure stability and compliance.

Paxos Drives Hyperliquid Growth with USDH and Revenue Sharing

Revenue sharing will be based on how much USDH people hold and trade on Hyperliquid platforms. The bought-back HYPE tokens will be distributed among users, validators, and partner platforms. Paxos said Hyperliquid’s next growth stage depends on gaining trust from institutions and businesses using on-chain services. The company aims to use its global network to bring Hyperliquid into the wider financial system, reaching beyond crypto users to major enterprises.

CoFounder of Paxos Labs, Bhau Kotecha, stated:

Kotecha announced that Paxos Labs, a recently established branch of Paxos, acquired Molecular Labs to accelerate stablecoin adoption within the Hyperliquid ecosystem. Molecular Labs powers LHYPE and WHLP, supporting Hyperliquid since HyperEVM started.

LHYPE integrates with platforms like Hyperlend, HypurrFi, and Felix, and operates on Pendle, HypurrFi, and various other decentralized exchanges.WHLP actively connects with Hyperliquid’s core yield sources on decentralized exchanges. The USDH stablecoin is designed to encourage global adoption while offering rewards for both users and developers. The company also intends to list HYPE as an asset within its brokerage infrastructure.

Paxos Aims to Expand USDH Beyond Crypto Users

Paxos is promoting USDH not just for crypto users, but also as a bridge for traditional institutions. By following the proposed U.S. GENIUS Act and Europe’s MiCA rules, the company aims to remove one of the biggest hurdles for large-scale stablecoin adoption: regulatory uncertainty. With its strong global presence, Paxos can drive USDH adoption into the mainstream.

Paxos currently works with more than 70 financial institutions and provides crypto services for platforms such as PayPal, Venmo, and MercadoLibre. This network could help USDH reach both institutional trading desks and consumer fintech platforms quickly.

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