Paxos Bets Big on USDH Stablecoin to Power Hyperliquid
Paxos launched USDH, a native stablecoin that is fully compliant and will live on Hyperliquid to bring decentralized finance into a new phase. As per the announcement on Saturday, this initiative is about creating a liquidity engine for growth and not just another stablecoin.
Paxos says they’re going to use 95% of any interest earned on USDH reserves to buy back HYPE, distributing value across validators, users, and partner protocols.
Hyperliquid-first compliant stablecoin next growth
“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,” stated the company.
Hyperliquid for Institutions: Using USDH as Bridge
Paxos expects USDH to link Hyperliquid with traditional financial institutions. The token will go live on HyperEVM and HyperCore and be utilized on fintech platforms and institutional rails.
Paxos has already established relationships with over 70 global financial partners, including those in the United States, European Union, Asia, and Latin America, to scale USDH adoption rapidly. The project aims to make Hyperliquid more appealing to banks, funds, and fintech innovators through compliance with U.S. and EU standards (GENIUS + MiCA).
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A Step Forward: HYPE Inspires Paxos To Go Beyond Stablecoins
The USDH proposal goes beyond reserves and buybacks. Paxos will also rope HYPE into its budding brokerage infrastructure already powering services for PayPal, Venmo and MercadoLibre.
HYPE could possibly make the transition from unknown DeFi token to a well-known asset that is used for daily transactions, thus increasing demand for it and strengthening the position of Hyperliquid in the market.
Hyperliquid Dominates Decentralized Futures
Hyperliquid is not starting from scratch. The platform handles 70% of decentralized perpetuals market share with a $400B trading volume and $106M revenue last month itself.
Hyperliquid multi-million volume makes it a market leader as Uniswap and PancakeSwap. If USDH launches, it will further strengthen that dominance of the dominant DeFi asset.
