Stablecoin issuer and infrastructure provider Paxos has submitted a proposal to launch USDH, a new stablecoin designed specifically for the Hyperliquid ecosystem with a fundamental emphasis on regulatory compliance.
The proposed asset would be structured to comply with both the US GENIUS Act and the EU MiCA framework, with the aim of providing institutional-grade clarity.
A key differentiator of the proposal is its unique economic model: 95% of all interest generated by USDH reserve assets would be allocated to the repurchase and burning of Hyperliquid's native token, HYPE.
This value would then be redistributed among users, validators, and ecosystem partners, creating a powerful incentive mechanism.