Paxos Labs proposes a revamped strategy for Hyperliquid’s USDH stablecoin, aiming for a partnership with PayPal and Venmo for seamless payments and zero-cost on/off-ramps. All revenue will be reinvested until $1B TVL, with Paxos capping its share at 5%. Competition from Frax, Agora, and LayerZero looms as validators prepare to vote.

The updated proposal from Paxos outlines a plan to scale USDH adoption, with a key partnership with PayPal to integrate USDH into its checkout and payment infrastructure. Venmo support and listing of Hyperliquid’s HYPE token are included, along with $20 million in incentives from PayPal to grow the ecosystem.

Paxos emphasizes its regulatory compliance and status as the only firm able to issue tokens in Europe. The proposal includes PayPal’s PYUSD as a reserve asset to strengthen USDH’s legal foundation. Beyond retail users, Paxos envisions Hyperliquid as a liquidity layer for enterprise finance, with plans for deeper DeFi integration using HyperEVM.

Various players like Frax Finance, Agora, Rain, LayerZero, Ethena Labs, and Sky are vying for the role of official issuer. The Hyperliquid Foundation remains neutral as validators vote, with proposals due by September 10. The GENIUS Act aims to bolster the dollar’s dominance by supporting dollar-pegged stablecoins in global markets, with the stablecoin market projected to exceed $2 trillion by 2028.

Ripple CEO Brad Garlinghouse predicts explosive growth in the stablecoin sector, with the market potentially reaching $2 trillion in the near future. Western Union shows interest in using stablecoins for global remittance operations, signaling a new phase of digital transformation.

Read more at Yahoo Finance: Paxos’ New Proposal for Hyperliquid’s USDH Stablecoin Includes PayPal Integration