{"id":871258,"date":"2025-09-07T21:12:25","date_gmt":"2025-09-08T02:12:25","guid":{"rendered":"https:\/\/newsycanuse.com\/index.php\/2025\/09\/07\/paxos-proposes-to-issue-usdh-stablecoin-for-hyperliquid-with-95-revenue-share-to-hype-buyback\/"},"modified":"2025-09-07T21:12:25","modified_gmt":"2025-09-08T02:12:25","slug":"paxos-proposes-to-issue-usdh-stablecoin-for-hyperliquid-with-95-revenue-share-to-hype-buyback","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2025\/09\/07\/paxos-proposes-to-issue-usdh-stablecoin-for-hyperliquid-with-95-revenue-share-to-hype-buyback\/","title":{"rendered":"Paxos Proposes to Issue USDH Stablecoin for Hyperliquid with 95% Revenue Share to HYPE Buyback"},"content":{"rendered":"
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Crypto Journalist<\/p>\n

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Anas Hassan<\/p>\n

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Crypto Journalist<\/p>\n

\n Anas Hassan <\/span>\n <\/p>\n<\/p><\/div>\n

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About Author<\/p>\n

Anas is a crypto native journalist and SEO writer with over five years of writing experience covering blockchain, crypto, DeFi, and emerging tech.<\/p>\n<\/p><\/div>\n<\/div><\/div>\n<\/p><\/div>\n

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Last updated:\u00a0<\/p>\n

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Paxos submitted a proposal to issue USDH, Hyperliquid\u2019s first native stablecoin, promising to allocate 95% of interest earnings from reserves toward HYPE token<\/strong><\/a> buybacks. <\/p>\n

The blockchain infrastructure provider is currently seen as the leading candidate for validator selection due to its acquisition of Molecular Labs and its decade-long stablecoin expertise.<\/p>\n

The proposal<\/a> comes as Hyperliquid prepares to launch its native stablecoin through a validator vote process, slashing its trading fee by 80%<\/a>. <\/p>\n

The decentralized exchange reserved the USDH ticker and invited teams to submit deployment proposals, with selection determined by on-chain validator consensus.<\/p>\n

Paxos Labs Acquires Hyperliquid Infrastructure Provider<\/span><\/h2>\n

Paxos established Paxos Labs specifically to accelerate stablecoin adoption within decentralized ecosystems, and will make Hyperliquid its first priority.<\/p>\n

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Proposal submitted: USDH powered by Paxos<\/p>\n

USDH issued by Paxos would mean:<\/p>\n

\u274f Global issuance that is GENIUS compliant
\u274f Revenue sharing that fuels HYPE, protocols and validators
\u274f Regulatory clarity + global scale to match @HyperliquidX<\/a>‘s explosive growth<\/p>\n

Hyperliquid. pic.twitter.com\/iKIFUOT0bQ<\/a><\/p>\n<\/div>\n

\u2014 Paxos (@Paxos) September 6, 2025<\/a><\/p><\/blockquote>\n<\/div>\n<\/figure>\n

The new entity acquired Molecular Labs, the infrastructure provider behind the LHYPE and WHLP tokens that have been operational since HyperEVM\u2019s launch.<\/p>\n

The acquisition provides native Hyperliquid ecosystem experience while leveraging Paxos\u2019s track record issuing stablecoins for Binance, PayPal, Kraken, Robinhood, and OKX. <\/p>\n

The company has achieved a cumulative issuance volume of $160 billion across seven tokenized assets.<\/p>\n

Paxos offers multi-jurisdictional compliance, including adherence to the GENIUS Act<\/a> in the United States and MiCA<\/a> compliance across Europe. <\/p>\n

The firm claimed it maintains banking licenses in Singapore and Abu Dhabi while operating payment corridors across Brazil, Mexico, Argentina, Turkey, the UAE, and the Philippines.<\/p>\n

According to the company, USDH will be deployed natively on both HyperEVM and HyperCore blockchains, with full regulatory oversight. <\/p>\n

The stablecoin will hold reserves in Treasury bills, repurchase agreements, and USDG tokens meeting institutional market maker requirements.<\/p>\n

The revenue-sharing model allocates 95% of interest earnings toward HYPE buybacks, which are distributed among protocols, validators, and users. <\/p>\n

Distribution will be proportional to USDH balances and trading volumes across partnering Hyperliquid platforms.<\/p>\n

Hyperliquid\u2019s Record-Breaking Performance Drives Stablecoin Demand<\/span><\/h2>\n

Earlier this month, a report by Cryptonews<\/a> showed that Hyperliquid generated $106 million in perpetual futures trading revenue during August, marking 23% growth from July\u2019s $86.6 million. <\/p>\n

The platform captured a 70% market share among DeFi perpetuals, processing $383 billion in monthly trading volume.<\/p>\n

The exchange operates with just 11 employees while achieving an annual volume of $330.8 billion, creating efficiency ratios that surpass those of traditional payment giants.<\/p>\n

Trading activity peaked at $29 billion in 24-hour volume during market volatility, generating $7.7 million in daily fees. <\/p>\n

Total value locked climbed to $762.57 million from $230.48 million in April, while cumulative perpetual futures volume reached $2.57 trillion.<\/p>\n

At the time of writing, the HYPE token is trading at $47.33 following the Paxos announcement, maintaining gains of 2% in the past 24 hours.<\/p>\n

\"Paxos
Source: CoinGecko<\/a><\/figcaption><\/figure>\n

Late last month, Former BitMEX CEO Arthur Hayes projected 126x returns on HYPE by 2028<\/a> as Treasury-backed stablecoins reshape global banking.<\/p>\n

Revenue Model Creates Ecosystem Flywheel Effect<\/span><\/h2>\n

USDH aims to extend Hyperliquid\u2019s builder code concept, which shares exchange revenue with volume drivers, to stablecoin economics. <\/p>\n

The proposed revenue distribution aims to create aligned incentives for application builders, validators, and community members.<\/p>\n

Current analysis suggests<\/a> USDH could generate $191 million annually in additional HYPE buybacks if replacing USDC usage on Hyperliquid.<\/p>\n

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The calculation uses existing bond and cash ratios from Circle\u2019s USDC reserves applied to Hyperliquid\u2019s stablecoin volumes.<\/p>\n

Paxos plans to integrate HYPE as a tradeable asset within its brokerage infrastructure, powering crypto trading for PayPal, Venmo, MercadoLibre, Nubank, and Interactive Brokers. <\/p>\n

The integration would provide additional liquidity and institutional access for the governance token.<\/p>\n

The stablecoin will support comprehensive funding capabilities, including direct fiat banking rails through SWIFT, ACH, and wire transfers. <\/p>\n

Moreover, native conversion from Circle\u2019s USDC, PYUSD, and USDG to USDH eliminates secondary market price exposure for users.<\/p>\n

USDH also enables real payment functionality through card issuance, merchant acceptance, and enterprise fintech integrations. <\/p>\n

The infrastructure connects Hyperliquid to global consumer banking systems beyond crypto-native users.<\/p>\n

Community response has been positive, with users highlighting Paxos\u2019s unmatched stablecoin experience and regulatory coverage as differentiating factors.<\/p>\n

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This is the strongest proposal yet and I feel comfortable endorsing @Paxos<\/a><\/p>\n

I feel strongly that the team responsible for undertaking this project should have experience in stablecoin issuance AND have native ties to Hyperliquid<\/p>\n

Paxos checks both boxes, albeit the native to\u2026 https:\/\/t.co\/5Lg8WfqkCN<\/a> pic.twitter.com\/8VoVP4p5NC<\/a><\/p>\n<\/div>\n

\u2014 Ramen???? (@Ramen_HL) September 6, 2025<\/a><\/p><\/blockquote>\n<\/div>\n<\/figure>\n

The proposal portrays USDH as a globally compliant infrastructure that supports Hyperliquid\u2019s transition from a crypto-native platform to mainstream financial infrastructure.<\/p>\n

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\n Leigha Mischke<\/p>\n","protected":false},"excerpt":{"rendered":"

Crypto Journalist Anas Hassan Crypto Journalist Anas Hassan About Author Anas is a crypto native journalist and SEO writer with over five years of writing experience covering blockchain, crypto, DeFi, and emerging tech. Last updated:\u00a0 September 7, 2025 Paxos submitted a proposal to issue USDH, Hyperliquid\u2019s first native stablecoin, promising to allocate 95% of interest<\/p>\n","protected":false},"author":1,"featured_media":871259,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[78811,24758],"tags":[],"class_list":{"0":"post-871258","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-paxos","8":"category-proposes"},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/871258","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/comments?post=871258"}],"version-history":[{"count":0,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/871258\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media\/871259"}],"wp:attachment":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media?parent=871258"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/categories?post=871258"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/tags?post=871258"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}