Paxos to Launch Stablecoin for Hyperliquid Ecosystem

Paxos proposes USDH launch for Hyperliquid, boosting institutional appeal.

The stablecoin infrastructure provider Paxos has unveiled a proposal to launch USDH, the first “stablecoin” in the lineup of the largest decentralized crypto derivatives exchange, Hyperliquid.

Proposal submitted: USDH powered by Paxos

USDH issued by Paxos would mean:

❏ Global issuance that is GENIUS compliant
❏ Revenue sharing that fuels HYPE, protocols and validators
❏ Regulatory clarity + global scale to match @HyperliquidX‘s explosive growth

Hyperliquid. pic.twitter.com/iKIFUOT0bQ

— Paxos (@Paxos) September 6, 2025

According to the statement, USDH will fully comply with the GENIUS Act (USA) and MiCA (EU). It will be backed by high-quality assets such as treasury bonds.

Paxos will allocate 95% of the interest income from the coin’s reserves to buy back HYPE for further distribution of tokens among users, ecosystem projects, and exchange partners.

The stablecoin will be deployed on the HyperEVM and HyperCore networks.

Paxos has prioritized this initiative and has registered a new enterprise, Paxos Labs, to implement it. As part of the project, the structure has already acquired Molecular Labs, an infrastructure provider for Hyperliquid, which is behind the LHYPE and WHLP primitives that support the ecosystem.

The launch of USDH aims to enhance Hyperliquid’s appeal to institutional investors and major fintech platforms, allowing it to move beyond a “crypto enthusiast environment.”

Paxos noted that it has helped launch and scale several regulated stablecoins, including Binance USD and PayPal USD. The company will leverage all its primary distribution channels, such as centralized exchanges, custodians, and DeFi protocols, to support USDH, and will facilitate the coin’s integration with more than 70 partners worldwide.

The Paxos initiative requires approval from the Hyperliquid community.

Back in August, the decentralized exchange’s revenue reached a record $106 million, a 23% increase compared to July’s figures.