Paxos Unveils USDH Stablecoin Plan, Targeting Hyperliquid Growth and HYPE Buybacks

Updated

September 8, 2025

Gambar Paxos Unveils USDH Stablecoin Plan, Targeting Hyperliquid Growth and HYPE Buybacks

Jakarta, Pintu News – Stablecoin infrastructure company Paxos has made the proposed launch of USDH – a stablecoin designed specifically for the Hyperliquid platform – a top priority.

The stablecoin is planned to be fully compliant with the GENIUS Act (Guiding and Establishing National Innovation for US Stablecoins Act) regulations in the United States as well as the MiCA (Markets in Crypto-Assets) regulatory standards applicable in the European Union.

Introduction of USDH by Hyperliquid

Proposal submitted: USDH powered by Paxos

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
— Paxos (@Paxos) September 6, 2025

In an announcement released on Saturday, Paxos shared that 95% of the interest generated by the USDH reserve will be used to buy back Hyperliquid’s native token, HYPE, which will then be redistributed to users, validators, and protocol partners.

“Paxos proposes the launch of USDH, a stablecoin designed specifically for the Hyperliquid ecosystem, with full regulatory compliance. The goal is to drive adoption, align incentives, and be the foundation for ecosystem growth in the next phase,” Paxos wrote in its statement.

The initiative will be led by Paxos Labs, a new unit formed under Paxos. As part of the preparations, they have also acquired Molecular Labs, the company behind the development of Hyperliquid protocols such as LHYPE and WHLP, to strengthen their understanding of Hyperliquid’s on-chain financial architecture.

USDH, Hyperliquid Bridge to Financial Institutions

Paxos announced that their latest stablecoin, USDH, will launch on Hyperliquid’s two main networks: HyperEVM and HyperCore. The aim of the project is to make Hyperliquid more attractive to financial institutions and mainstream fintech platforms, by connecting it to the global banking infrastructure and offering regulatory certainty.

As a company that has integrated with more than 70 financial partners and operates in key markets such as the United States, the European Union, Singapore, Abu Dhabi, and Latin America, Paxos will utilize its network and infrastructure to distribute USDH globally.

The proposal also includes a built-in incentive mechanism. Most of the proceeds from the USDH reserve will be used to buy back HYPE tokens, the value of which will then be funneled back into the Hyperliquid ecosystem.

This distribution will be done directly to developers, validators, and users, as part of a decentralized growth strategy.

Not stopping at stablecoins, Paxos also plans to integrate HYPE into its brokerage infrastructure, which currently supports crypto services for PayPal, Venmo, and MercadoLibre.

Hyperliquid Dominance in Decentralized Perpetual Markets

hyperliquid crypto — Source: Crypto Economy

Hyperliquid is now one of the major players in the decentralized perpetual futures sector, with over $106 million in revenue in just the last month and a total trading volume approaching $400 billion.

This dominance gives it a market share of 70%, making it the top platform in the sector. Only Uniswap and PancakeSwap managed to surpass Hyperliquid in terms of weekly trading volume, according to data from DefiLlama.

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