Paxos proposes to launch USDH, a stablecoin for Hyperliquid, with most of the proceeds being used to buy back HYPE

According to ChainCatcher, stablecoin infrastructure company Paxos has submitted a proposal to launch a compliant stablecoin USDH in the Hyperliquid ecosystem, which complies with the GENIUS Act and MiCA regulatory standards. The announcement shows that 95% of the interest generated by the USDH reserve will be used to repurchase HYPE tokens and allocate them to users, validators and partner agreements. The plan is under the responsibility of the newly established PaxosLabs within Paxos and has acquired MolecularLabs, which develops the Hyperliquid basic components LHYPE and WHLP. USDH will be deployed on the HyperEVM and HyperCore chain, aiming to attract institutions and mainstream financial technology platforms to access through connection with global banking channels and compliance systems. Additionally, Paxos said it will integrate HYPE into its brokerage infrastructure, which has provided encryption services for PayPal, Venmo and MercadoLibre. According to DefiLlama data, Hyperliquid accounts for 70% of the decentralized perpetual futures market, with trading volume last month nearly US$400 billion and revenue exceeding US$106 million.