Paxos has announced a proposal to launch USDH, a stablecoin specifically designed for the Hyperliquid ecosystem. This initiative is aimed at ensuring compliance with regulatory standards set by the GENIUS Act and MiCA. A key feature of USDH is that 95% of the interest earned from its reserves will be utilized for buying back the native HYPE token, redistributing it among users, validators, and partner protocols. The newly formed Paxos Labs, which recently acquired Molecular Labs, will manage the project and enhance its capabilities. USDH will operate on HyperEVM and HyperCore chains, intending to make Hyperliquid appealing to institutional players and mainstream fintech by integrating with global banking systems. The proposal also includes a rewards mechanism to channel value back to the community. Paxos, which collaborates with over 70 financial institutions, aims to leverage its infrastructure for the distribution of USDH. The stablecoin is part of broader efforts to anchor the next growth phase of the Hyperliquid ecosystem and integrate HYPE within Paxos's existing brokerage services.

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