Stablecoin infrastructure firm Paxos proposes launching USDH, a Hyperliquid-first stablecoin compliant with regulatory standards. 95% of interest earned from USDH reserves will be used to buy back HYPE token. Paxos Labs, a new entity within Paxos, will lead the initiative after acquiring Molecular Labs, enhancing its understanding of Hyperliquid’s financial architecture.

USDH will be deployed across HyperEVM and HyperCore chains to attract institutions and mainstream fintech platforms. Paxos plans to leverage its global infrastructure to distribute USDH and integrate HYPE into brokerage services for PayPal, Venmo, and MercadoLibre. The proposal includes a rewards mechanism to distribute yield to builders, validators, and users.

Hyperliquid dominates decentralized perpetual futures with over $106 million in revenue last month on nearly $400 billion in trading volume. The platform commands a 70% market share in the sector, surpassing Uniswap and PancakeSwap in weekly trading volume according to DefiLlama.

Read more at Cointelegraph: Paxos Proposes Stablecoin for Hyperliquid with HYPE Buyback