Paxos Labs has unveiled a new plan for the USDH stablecoin, developed by Hyperliquid. This revised proposal prioritizes partnerships with PayPal and Venmo. Following today’s competitive bidding process closure, validator voting will commence on September 14th.
Paxos’ efforts aim to integrate USDH into PayPal’s payment infrastructure and offer support for stablecoins on Venmo. They plan to list HYPE coin on the platform and provide PayPal with a $20 million incentive for the Hyperliquid ecosystem.
This new proposal also outlines how Paxos will direct revenue earned from USDH toward Hyperliquid’s growth fund and the Assistance Fund, capped at 5% even if total locked assets exceed $5 billion. To achieve regulatory compliance, the proposal includes incorporating PYUSD as a reserve asset.
The project seeks to strengthen integration with institutions by aligning itself with the GENIUS Act, currently under discussion in the U.S., and obtaining authorization to issue coins in Europe.
A key element of this plan is Paxos’ strategy to utilize its existing stablecoin infrastructure already offered to companies such as Stripe, Mastercard, Robinhood, Nubank, Mercado Libre, and Interactive Brokers, for corporate-scale use cases within the Hyperliquid ecosystem.
The project faces intense competition from Frax Finance, the Agora-Rain-LayerZero alliance, Ethena Labs, and Sky during the bidding process.