Yeliz Akmaca 
Paxos has proposed USDH, a fully compliant stablecoin designed for the Hyperliquid ecosystem. Most of its yield will fund HYPE token buybacks.
Paxos Launches Hyperliquid-Focused USDH Stablecoin
Paxos introduced USDH as a new stablecoin aimed at Hyperliquid users. It will fully comply with the GENIUS Act and MiCA regulatory standards. This ensures institutional trust and regulatory clarity. Furthermore, 95% of interest from USDH reserves will go to buy back HYPE tokens. The program will redistribute value to users, validators, and partner protocols.
Paxos Labs, a newly established unit, will lead this initiative. After acquiring Molecular Labs, developers of Hyperliquid’s LHYPE and WHLP primitives, Paxos gained deep insight into the platform’s on-chain financial architecture. Moreover, Paxos’ global network enables smooth distribution of USDH to fintech and institutional partners.
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 growthHyperliquid. pic.twitter.com/iKIFUOT0bQ
— Paxos (@Paxos) September 6, 2025
Bridging Hyperliquid to Institutions and HYPE Integration
USDH will operate on both HyperEVM and HyperCore chains. This integration connects Hyperliquid to global banking rails and regulatory clarity. Paxos, already working with over 70 financial partners across the US, EU, Singapore, Abu Dhabi, and Latin America, will use its infrastructure for efficient USDH distribution.
In addition, Paxos will integrate HYPE into its brokerage infrastructure, powering crypto services for PayPal, Venmo, and MercadoLibre. Meanwhile, Hyperliquid commands 70% of the decentralized perpetual futures market. Last month, it generated $106 million in revenue on nearly $400 billion in trading volume, making it one of the top platforms in the sector.
This initiative positions Hyperliquid for a new growth phase, combining regulatory compliance, institutional adoption, and ecosystem incentives. USDH and HYPE integration makes the platform more attractive for both institutional and individual investors.
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