Paxos Backs Hyperliquid with USDH Stablecoin Proposal

Stablecoin issuer Paxos has submitted a proposal to support Hyperliquid’s launch of its native USDH stablecoin, aiming to strengthen both compliance and adoption across global markets.

Under the plan, Paxos would handle the worldwide distribution of USDH, ensuring alignment with the GENIUS regulatory framework. This approach is designed to provide transparency and legal clarity, key factors as demand for regulated stablecoins accelerates.

Paxos’ track record in working with institutions and regulators positions it as a strategic partner for Hyperliquid’s expansion.
A distinctive element of the proposal is a revenue-sharing mechanism. This system directs support to the HYPE ecosystem, validators, and the broader protocol, giving Hyperliquid the operational scale needed to match its rapid growth.

The structure ensures that both the network and its contributors benefit from the stablecoin’s adoption.

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In addition, Paxos committed to using 95% of the interest earned from USDH reserves to repurchase HYPE tokens. This buyback model is expected to enhance liquidity and strengthen token demand, aligning financial incentives across the ecosystem.

If approved, the partnership could set a new precedent for integrating stablecoin infrastructure with fast-growing DeFi protocols while maintaining regulatory safeguards.