Paxos Unveils USDH Stablecoin Proposal for Hyperliquid, Boosting HYPE Token

Stablecoin infrastructure firm Paxos has put forth a proposal to launch USDH, a new stablecoin designed specifically for the Hyperliquid ecosystem. This initiative aims to enhance Hyperliquid's appeal to institutional investors and mainstream fintech platforms by integrating global banking rails and regulatory clarity. A key feature of the proposal is the allocation of 95% of the yield generated from USDH reserves to buy back Hyperliquid's native token, HYPE, with the tokens then redistributed to users, validators, and partner protocols.