Paxos Proposes to Issue USDH Stablecoin for Hyperliquid with 95% Revenue Share to Hype Buyback
Paxos, a leading blockchain infrastructure provider, has presented a proposal to issue USDH, Hyperliquid’s first native stablecoin, referred to as the Hype token. This move comes as Hyperliquid prepares to launch its native stablecoin through a validator tune process, reducing its trading fee by 80%. The decentralized stock exchange has reserved the USDH ticker and invited teams to submit proposals, with the selection to be determined by consensus from the validator for the chain.
The proposal is significant, given Paxos’ expertise in stablecoin issuance, having worked with major players like Binance, PayPal, and Robinhood. The company has achieved a cumulative trading volume of $160 billion in seven tokenized assets. Paxos offers compliance with several jurisdictions, including compliance with the Genius Act in the USA and compliance with Mica throughout Europe. The company claims to maintain banking licenses in Singapore and Abu Dhabi and operates payment corridors in Brazil, Mexico, Argentina, Turkey, the United Arab Emirates, and the Philippines.
Hyperliquid’s Record-Breaking Performance Drives Stablecoin Demand
According to a report by Cryptonews, Hyperliquid achieved $106 million in perpetual futures trading in August, representing a 23% growth compared to $86.6 million in July. The platform recorded a market share of 70% in Defi Perpetuals and processed a monthly trading volume of $383 billion. With only 11 employees, the stock exchange has reached an annual volume of $330.8 billion, creating efficiency rates that exceed traditional payment giants.
The total value locked (TVL) increased from $762.57 million in April, while the cumulative perpetual futures volume reached $2.57 trillion. At the time of writing, the Hype token is trading at $47.33, with a 2% gain in the last 24 hours. The proposal by Paxos has been well-received by the community, with users highlighting the company’s unmatched stablecoin experience and regulatory coverage as distinguishing factors.
The Revenue Model Creates an Ecosystem Flywheel Effect
The proposed revenue distribution aims to create aligned incentives for application builders, validators, and community members. The current analysis suggests that USDH could generate $191 million in additional Hype resolution annually if it replaces USDC use on Hyperliquid. Paxos plans to integrate Hype into its broker infrastructure as a tradable asset and operate the crypto handle for PayPal, Venmo, Mercadolibre, Nubank, and Interactive Brokers. The integration would provide governance token additional liquidity and institutional access.
Stablecoin will support extensive financing skills, including Direct Fiat Banking Rails via Swift, Ach, and Wire Transfer. Additionally, the native conversion of Circle’s USDC, PYUSD, and USDG to USDH will contain the secondary market price for users. USDH also enables real payment functions through map output, dealer acceptance, and corporate infech integrations. The infrastructure combines Hyperliquid with global consumer banking systems beyond crypto-native users.
For more information, visit https://cryptonews.com/news/paxos-proposes-to-issue-usdh-stablecoin-for-hyperliquid-with-95-revenue-share-to-hype-buyback/
