Stablecoin Infrastructure Firm Paxos has submitted a proposal to launch USDH. This is a similar Stablecoin that fully complies with the US Stablecoins Act (Genius Act) national innovation and Crypto-Assets (MICA) regulatory standards market.
According to a announcement released Saturday, 95% of the interest earned from USDH reserves will be used to buy back Hyperliquid's native token hype, which will be redistributed to user, balter and partner protocols.
“We propose the launch of USDH, a high lipid-first, fully compliant Stablecoin objective, built to promote adoption, coordinate incentives and fix the next era of ecosystem growth,” writes Paxos.
Paxos Labs, a newly formed entity within Paxos, will lead the initiative. Hyperliquid Primitives Acquired Molecular Labs, the infrastructure company behind LHype and WHLP, to enhance understanding of Hyperliquid's Onchain Financial Architecture.
Paxos proposes USDH Stablecoin. sauce: Pax
Related: High lipid tokens gain institutional access using the new 21Shares ETP
USDH bridges high lipids to institutions
USDH will be deployed on both HypereVM and hypercore chains. The project's aim, according to Paxos, is to make high lipids more attractive to institutions and mainstream fintech platforms by bridging global bank rails and regulatory clarity.
Already integrated with over 70 financial partners and operating in major markets such as the US, EU, Singapore, Abu Dhabi and Latin America, Paxos will leverage this infrastructure to distribute USDH.
The proposal comes with a built-in reward mechanism. Paxos will allocate most of the yield from USDH reserves to buy back the hype and return the value to a high lipid ecosystem. This includes direct distribution to builders, validators and users.
Beyond Stablecoin, Paxos says it will integrate hype into broker infrastructure, which already bolsters crypto services from PayPal, Venmo and Mercadolibre.
Related: Kazakhstan Pilots USD will pay Stablecoin for regulatory costs
High lipids capture 70% of the decentralized PARP market
High lipids have emerged as the dominant force of a decentralized, permanent future, with revenues increased by more than $160 million last month and trading volumes of around $400 billion.
This allows Defilama to provide the platform with a 70% market share in this sector, with only Uniswap and Pancakeswap exceeding that in weekly trading volumes.
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