Key Takeaways:
- Paxos proposes USDH, a Hyperliquid-first stablecoin compliant with both U.S. and EU regulations, directing 95% of yield to HYPE token buybacks.
- The initiative is led by Paxos Labs, which gained Hyperliquid-native infrastructure via its acquisition of Molecular Labs.
- USDH aims to bridge Hyperliquid with global finance, while HYPE integration expands into Paxos’ brokerage network, including platforms like PayPal and MercadoLibre.
Paxos has proposed the launch of USDH, a new stablecoin built specifically for the Hyperliquid ecosystem.
The coin is designed to comply with both the GENIUS Act in the United States and Europe’s MiCA regulations, signaling a strong emphasis on regulatory alignment.
Proposal submitted: USDH powered by Paxos
— Paxos (@Paxos) September 6, 2025
USDH issued by Paxos would mean:
❏ Global issuance that is GENIUS compliant
❏ Revenue sharing that fuels HYPE, protocols and validators
❏ Regulatory clarity + global scale to match @HyperliquidX's explosive growth
Hyperliquid. pic.twitter.com/iKIFUOT0bQ
A key feature of USDH is that 95% of the interest generated from its reserves will be directed toward buying back Hyperliquid’s native token, HYPE, with the value redistributed to users, validators, and partner protocols.
The project will be driven by Paxos Labs, a new division formed after Paxos acquired Molecular Labs, the developer behind Hyperliquid primitives LHYPE and WHLP.
USDH will be deployed on HyperEVM and HyperCore, aiming to attract institutional players and fintech platforms by connecting Hyperliquid to global banking systems.
Paxos also plans to leverage its network of 70+ financial partners across the US, EU, Asia, and Latin America for distribution.
Additionally, HYPE will be integrated into Paxos’ brokerage infrastructure, which already supports platforms like PayPal, Venmo, and MercadoLibre.
Hyperliquid, known for decentralized perpetual futures, recently reported $400 billion in trading volume and holds a 70% market share in its sector.
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