Paxos backs Hyperliquid with proposal to support USDH stablecoin launch

Stablecoin company Paxos submitted a proposal on Saturday to the Securities and Exchange Commission (SEC) to support Hyperliquid’s launch of the USDH ￰0￱ will be deployed on both HyperEVM and ￰1￱ company ensures global distribution compliance with the ￰2￱ Act, Europe’s MiCA, and regulatory frameworks across APAC, the Middle East, Latin America, and ￰3￱ believes its global compliance coverage and connectivity to consumer banking will enable Hyperliquid to transition from an ecosystem for crypto natives to a financial platform for global ￰4￱ plans to use USDH yield for HYPE buyback and redistribution 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 ￰5￱ — Paxos (@Paxos) September 6, 2025 Paxos said its mission has always been to scale access to on-chain finance by partnering with platforms while maintaining enterprise-grade security, technology, and ￰6￱ to the company, USDH has a revenue-sharing mechanism that supports HYPE, and the ￰7￱ ensures compliance and scale to match Hyperliquid’s rapid ￰8￱ was the first to introduce the concept of sharing exchange revenue with those who drive volume to its ￰9￱ said its USDH will boost the initiative to allow those who contribute to the growth of the stablecoin to retain a share of the underlying ￰10￱ company plans to use 95% of the interest generated by its reserves backing USDH to repurchase HYPE and redistribute it back to ecosystem ￰11￱ plans to hold the highest quality reserves of T-Bills, Repos, and USDG, acknowledging that USDH will be required to be supported by ￰12￱ makers and ￰13￱ to the report, revenue share will equal the USDH balances and volumes across partnering Hyperliquid ￰14￱ redistribution initiative aims to allocate the bought-back HYPE among protocols, validators, and ￰15￱ argued that Hyperliquid’s next phase of growth requires the trust of institutions and consumer enterprises that want to interact ￰16￱ firm hopes to use its global enterprise distribution to integrate Hyperliquid into the global financial system by expanding beyond crypto-native users towards major enterprises.

“We believe Hyperliquid will be the foundational platform for global, decentralized ￰17￱ is why Paxos is committed to making Hyperliquid the first priority with Paxos Labs, a new entity dedicated to accelerating stablecoin adoption within decentralized ecosystems.” – Bhau Kotecha , CoFounder of Paxos ￰18￱ revealed that Paxos Labs has acquired Molecular Labs in a bid to accelerate stablecoin adoption in the Hyperliquid ￰19￱ Labs is the infrastructure provider behind LHYPE and WHLP, which have powered the Hyperliquid ecosystem since HyperEVM ￰20￱ said LHYPE will contribute to the Hyperliquid ecosystem since it utilizes Hyperlend, HypurrFi, Felix, and is deployed on Pendle, HypurrFi, and other decentralized exchanges (DEXs).

WHLP aims to enable composability with Hyperliquid’s foundational yield source deployed on ￰21￱ tokenization platform stated that the USDH stablecoin is purpose-built to drive global adoption and align incentives with builders and users on ￰22￱ blockchain company also plans to add support for HYPE as an asset within Paxo’s brokerage ￰23￱ seeks proposals from teams ready to launch USDH Hyperliquid said it’s launching its dollar-pegged asset in its network upgrade and is opening the process to competition among development teams to submit ￰24￱ firm said that after a validator quorum approves a candidate, the chosen team will still need to win a gas auction before deployment goes ￰25￱ Kanji, partner at Dragonfly, explained that Hyperliquid’s initiative could significantly impact existing stablecoin providers on the ￰26￱ to him, the initiative could disrupt Circle’s USDC, which is currently the main settlement stablecoin for derivatives trading on ￰27￱ believes that a complete switch to USDH could generate an additional $220 million in annualized revenue for HYPE token holders, based on a 4% yield ￰28￱ also stated that the migration would cut into Circle’s revenues by the same ￰29￱ tech executive also mentioned that the initiative would represent a 7% reduction in USDC’s outstanding supply, currently sitting at $5.5 billion on the ￰30￱ you're reading this, you’re already ￰31￱ there with our newsletter .