Paxos launched the USDH stablecoin, with 95% of the revenue used for HYPE buybacks.

The stablecoin infrastructure giant Paxos announced the launch of a new Hyperliquid priority stablecoin USDH, committing 95% of its reserve earnings to repurchase the Hyperliquid native token HYPE, rewarding users, validators, and partner protocols. This plan aims to drive the Hyperliquid ecosystem into the next rise phase and fully comply with international regulatory standards such as the U.S. GENIUS Act and the EU MiCA.

USDH: A compliant, priority Hyperliquid new stablecoin

Paxos announced that USDH will be deployed on the HyperEVM and HyperCore chains, and will serve as a fully compliant stablecoin, connecting Hyperliquid with global banking and mainstream fintech platforms.

Paxos Labs will be responsible for advancing the project and has acquired the infrastructure company Molecular Labs (the developer of Hyperliquid's original languages LHYPE and WHLP) to strengthen its grasp on Hyperliquid's on-chain financial architecture.

Profit Buyback Mechanism: HYPE Value Feedback Ecosystem

The biggest highlight of USDH lies in its yield distribution model—95% of the reserve interest will be used to buy back HYPE and distribute it to the builders, validators, and users of the Hyperliquid ecosystem.

Paxos stated that this mechanism will coordinate ecological incentives to promote the long-term adoption and liquidity rise of Hyperliquid, while creating ongoing buying support for HYPE Token.

Paxos' global layout and partners

Paxos has established partnerships with over 70 financial institutions, covering major markets such as the United States, the European Union, Singapore, Abu Dhabi, and Latin America. The company plans to utilize its existing infrastructure to distribute USDH and integrate HYPE into its brokerage business, which has already provided crypto services for PayPal, Venmo, and MercadoLibre.

Market Position of Hyperliquid

According to DefiLlama data, Hyperliquid holds a market share of up to 70% in the decentralized perpetual futures market, with a trading volume close to 400 billion USD last month, generating over 106 million USD in revenue. Its market size is only surpassed by the weekly trading volumes of Uniswap and PancakeSwap, making it the absolute leader in the DeFi derivatives space.

Conclusion

The USDH launched by Paxos is not only a significant upgrade to the Hyperliquid ecosystem but also marks a new exploration of stablecoins in compliance and revenue distribution models. With the mechanism of 95% revenue repurchasing HYPE being implemented, Hyperliquid is likely to welcome a new round of capital and user rise, further consolidating its dominant position in the decentralized derivatives market.