Paxos proposes to launch the stablecoin USDH for Hyperliquid, with most of the profits used to buy back HYPE

ChainCatcher news, the stablecoin infrastructure company Paxos has submitted a proposal to launch the compliant stablecoin USDH in the Hyperliquid ecosystem, in accordance with the GENIUS Act and MiCA regulatory standards. The announcement indicates that 95% of the interest generated from USDH reserves will be used to repurchase HYPE tokens and distribute them to users, validators, and partner agreements.

The plan is managed by the newly established Paxos Labs within Paxos and has acquired Molecular Labs, which developed the core components LHYPE and WHLP for Hyperliquid. USDH will be deployed on the HyperEVM and HyperCore chains, aiming to attract institutional and mainstream fintech platforms by connecting with global banking channels and compliance systems.

Additionally, Paxos stated that it will integrate HYPE into its brokerage infrastructure, which has already provided crypto services for PayPal, Venmo, and MercadoLibre. According to DefiLlama data, Hyperliquid holds a 70% share in the decentralized perpetual futures market, with a trading volume of nearly $400 billion last month and revenue exceeding $106 million.