Paxos has proposed USDH, a stablecoin for the Hyperliquid ecosystem, aimed at full compliance with the GENIUS Act and MiCA regulatory standards. The initiative is focused on driving adoption and aligning incentives within the ecosystem. A significant portion, 95%, of the interest earned from USDH reserves will be allocated to buy back Hyperliquid's native token, HYPE, redistributing it to users, validators, and partner protocols. The proposal aims to bridge Hyperliquid to global institutional markets, enhancing its appeal to mainstream fintech platforms. Paxos, backed by a strong infrastructure of over 70 financial partners and its recent acquisition of Molecular Labs, will oversee the deployment of USDH across HyperEVM and HyperCore chains. Furthermore, Paxos plans to integrate HYPE into its existing brokerage services, already utilized by major companies like PayPal and Venmo. This comes as Hyperliquid holds a dominant position in decentralized perpetual futures, capturing a 70% market share in the sector, with significant trading volumes reported.

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