- The project would use 95% of interest earned from USDH reserves to buy back HYPE tokens, according to the announcement.
- USDH is planned for deployment on the HyperEVM and HyperCore chains and aims to connect Hyperliquid to institutional banking rails.
- Paxos Labs has acquired Molecular Labs, the developer of Hyperliquid primitives LHYPE and WHLP, to support the launch.
- Hyperliquid recently reported about $106 million in revenue on nearly $400 billion in trading volume, giving it an estimated 70% share of the decentralized perpetual futures market, per DefiLlama.
Paxos submitted a proposal on Saturday to launch USDH, a stablecoin built for the Hyperliquid ecosystem that it says would meet the Guiding and Establishing National Innovation for US Stablecoins Act (GENIUS Act) and Markets in Crypto-Assets (MiCA) rules. The firm intends USDH to increase adoption, align incentives, and support ecosystem growth.
The proposal states that 95% of interest earned from USDH reserves would be used to buy back Hyperliquid’s native token, HYPE, and redistribute value to users, validators and partner protocols, according to the announcement. Paxos Labs, a new unit within Paxos, will lead the initiative.
Paxos Labs has acquired Molecular Labs, the developer behind Hyperliquid primitives LHYPE and WHLP, to deepen its understanding of Hyperliquid’s onchain architecture. The company says it will also integrate HYPE into its brokerage infrastructure, which currently supports crypto services for Paypal, Venmo and MercadoLibre.
“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 in the announcement. The proposal calls for USDH to be distributed through Paxos’s network of more than 70 financial partners across the US, EU, Singapore, Abu Dhabi and Latin America.
USDH will deploy on both HyperEVM and HyperCore chains. A stablecoin is a digital token designed to maintain a stable value relative to a currency like the US dollar; deployment on multiple chains can help users move the token across different networks.
Hyperliquid reported generating about $106 million in revenue last month on nearly $400 billion in trading volume, giving it an estimated 70% market share in decentralized perpetual futures, according to DefiLlama. Perpetual futures are derivative contracts that do not expire, allowing traders to hold positions indefinitely.
Additional details and updates on the USDH proposal were posted by Paxos on X: Paxos status.
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