Paxos, a leading stablecoin infrastructure provider, has announced plans to launch a new digital asset — USDH, which will become the first stablecoin within the ecosystem of Hyperliquid, the largest decentralized crypto derivatives exchange.
Regulatory Compliance and Asset Backing
According to the company, USDH will fully comply with the requirements of the GENIUS Act (US) and MiCA (EU). The reserves of the coin will be backed by high-quality assets, including US Treasury bonds, ensuring transparency and stability.
Economic Model
A key feature of USDH is that 95% of the interest income from reserves will be directed towards repurchasing the HYPE token. The acquired assets will then be distributed among users, ecosystem projects, and Hyperliquid partners, strengthening both value and community engagement.
Technical Integration
The stablecoin will be deployed on the HyperEVM and HyperCore networks, ensuring native integration with the exchange’s infrastructure and derivative instruments.
Paxos Labs and Ecosystem Expansion
To implement the initiative, Paxos has established a new entity called Paxos Labs, which has already acquired Molecular Labs — an infrastructure provider for Hyperliquid. This company is responsible for key primitives LHYPE and WHLP, which underpin the ecosystem’s functionality.
Focus on Institutional Players
The launch of USDH is aimed at expanding Hyperliquid’s appeal beyond crypto enthusiasts to attract institutional investors and fintech platforms. Paxos intends to leverage proven distribution channels, including centralized exchanges, custodial services, and DeFi protocols. In addition, more than 70 of the company’s global partners will support the coin’s integration.
Paxos’ Track Record and Prospects
Paxos has previously supported the launch and scaling of regulated stablecoins such as Binance USD (BUSD) and PayPal USD (PYUSD). With this expertise, the company expects to ensure the successful adoption of USDH in the Hyperliquid ecosystem.
At the same time, the stablecoin launch must receive approval from the Hyperliquid community, highlighting the decentralized nature of the initiative.
Context
In August, the decentralized exchange Hyperliquid recorded a revenue high of $106 million, marking a 23% increase compared to July. This growth demonstrates the platform’s rising popularity and underscores the relevance of launching a new stablecoin.
