Paxos Aims to “Anchor” Hyperliquid Growth with Yield-Generating Stablecoin USDH

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Paxos has put forward a groundbreaking proposal to launch USDH, a “Hyperliquid-first” stablecoin that directly funds ecosystem growth through a novel buyback mechanism.

The plan dictates that a overwhelming 95% of the interest income from the stablecoin’s reserves will be used to buy back the HYPE token, effectively recycling value back into the Hyperliquid community.

Announced on Saturday, the proposal positions USDH as a tool to “align incentives and anchor the ecosystem’s next era of growth.” Beyond its innovative tokenomics, the stablecoin is also designed to be fully compliant with major upcoming regulations like the GENIUS Act and MiCA.

The project will be led by Paxos Labs, which has bolstered its capabilities by acquiring Molecular Labs, the core developer behind key Hyperliquid primitives. By connecting Hyperliquid to global banking with a compliant stablecoin, Paxos intends to drive significant adoption from both institutions and decentralized applications.