Stablecoin infrastructure company Paxos has submitted a proposal to launch USDH, a compliant stablecoin, in the Hyperliquid ecosystem, in compliance with the GENIUS Act and MiCA regulatory standards. The announcement shows that 95% of the interest generated from USDH reserves will be used to repurchase HYPE tokens and distribute them to users, validators, and partner agreements.

The plan is led by Paxos Labs, a newly established internal division of Paxos, which has acquired Molecular Labs, the developer of Hyperliquid's foundational components LHYPE and WHLP. USDH will be deployed on the HyperEVM and HyperCore chains, aiming to attract institutions and mainstream fintech platforms by connecting with global banking channels and compliance systems.

In addition, Paxos stated that it will integrate HYPE into its brokerage infrastructure, which already provides crypto services for PayPal, Venmo, and MercadoLibre. According to DefiLlama data, Hyperliquid accounts for 70% of the decentralized perpetual futures market, with nearly $400.00B in trading volume and over $106.00M in revenue last month. [Odaily] (Cointelegraph)