usdh

Hyperliquid has officially launched its first dollar-pegged stablecoin, USDH, marking a major step toward reducing reliance on external stablecoins like USDC. The debut came after a heated bidding war, with Native Markets winning issuance rights through a validator vote.
🚀 Launch Highlights
USDH went live with a USDC trading pair, logging nearly $2 million in early trading volume within the first 24 hours.Backed by cash and U.S. Treasury equivalents, USDH aims to offer traders a reliable unit of account and collateral across the Hyperliquid ecosystem.Revenue from reserves will be split between HYPE token buybacks and ecosystem growth, directly linking stablecoin adoption to Hyperliquid’s native token economy.
📊 Price Action & Market Reaction
HYPE token saw a mild uptick as traders priced in long-term buyback demand, though short-term moves remained limited.USDH pairs showed strong liquidity early on, but spreads were slightly wider than USDC, reflecting cautious initial adoption.If usage deepens, USDH could reduce dependence on Circle’s USDC while keeping yield within the Hyperliquid network.
⚠️ Risks to Watch
Peg stability in volatile conditions.Governance controversy, with concerns that the vote favored Native Markets.Competition from dominant players like USDC and USDT.
✅ Recommendation
Short-term: Expect some liquidity volatility and peg testing.Medium-term: If reserve transparency and adoption grow, USDH could become a strong collateral option inside Hyperliquid.For HYPE holders: Gradual upside is possible via reserve-linked buybacks.

👉 Bottom line: USDH shows strong potential, but traders should monitor adoption closely before making large moves.

Do you think USDH can realistically challenge USDC/USDT dominance, or will it stay a niche stablecoin within Hyperliquid?

#Hyperliquid #USDH #stablecoin #CryptoNews

Today, on September 10, 2025, a Paxos USDH Proposal V2 is released. It is a detailed plan aimed at scaling Hyperliquid on a global scale while also maintaining regulatory compliance. The proposal brings PayPal and Venmo integrations. This move makes USDH a potential gateway stablecoin for global DeFi.
Paxos USDH Proposal V2 Released Today
On September 10, 2025,  one of the world's most trusted and regulated stablecoin issuers announced Proposal V2 after three days of intense community consultations. This proposal is a refined version of its previous proposal, answering issues that have been raised by the Hyperliquid community.
At its root, V2 adds three important upgrades:
The integration of HYPE with PayPal and VenmoThe introduction of free USDH on/off-rampsA $20 million incentive fund to help speed the growth of ecosystems.
Beyond incentives, the proposal harnesses the special legal authorization to issue stablecoins anywhere in the world, particularly in Europe, where no other issuer could benefit from the same compliance advantage.

Source: Official website
Hyperliquid, PayPal, and Venmo's Relation with the Paxos USDH Proposal V2
Hyperliquid (HYPE Token) is the native ecosystem in which USDH will operate. The release turns Hyperliquid into a Global liquidity infrastructure. Hyperliquid becomes one of those trading centers for building a global financial infrastructure as its base currency.
PayPal, with over 400 million users and $1 trillion+ annual payment volume, will be integrating Hyperliquids' planned stablecoin into its ecosystem, including Checkout, Braintree, Hyperwallet, and Xoom. PayPal has also committed $20 million in incentives to the HYPE ecosystem and will sponsor free USDH on/off-ramps, making transactions in stablecoins seamless for global users.
Venmo, PayPal's social payment app that has a strong adoption in the U.S., will include HYPE and support its based transactions. This means millions of Venmo users can buy, hold, and use USDH directly for peer-to-peer payments and transactions with merchants.
Global Integrating Payments
Under the new proposal, there are multiple real-world use cases:
Checkout with Crypto: Customers pay for purchases, and merchants receive fiat.P2P transfers on Venmo.Remittances through Xoom in 100+ countries.Mass payouts to freelancers and contractors using Hyperwallet.
Paxos Revenue and Reward Structure
One of the big improvements on V2 is the changed revenue and reward model:
Paxos earns zero revenue until USDH’s TVL (total value locked) exceeds $1B.After $1B, Paxos’ share rises gradually, capped at 5% once TVL surpasses $5B.All fees are collected in HYPE tokens, ensuring alignment with community interests.Rewards to the AF (Asset Fund) increase from 20% at launch to 70% once TVL grows beyond $5B.
This structure ensures that the stablecoin issuer only makes money when Hyperliquid is really growing well.
Paxos Growth Plan
Paxos hopes to extend Hyperliquid beyond trading to a full-scale global liquidity and DeFi infrastructure.Through HIP-3, Paxos will also provide asset issuers with the incentive to list perpetual markets on HYPE, which will increase the demand to trade.Stablecoin issuer is planning to launch DeFi products, collateralized loans, and structured financial offerings, which will be accessible to a global audience through its regulated network.Importantly, this stablecoin issuer will incentivize ecosystem builders, liquidity providers, and enterprises to adopt a dollar-backed token, ensuring long-term adoption.

Source: Official  X

Paxos Hyperliquid Session is going to happen tomorrow for the questions and doubts arising from the community. 
Conclusion
Paxos Crypto says its success is linked to the performance of HYPE. With no revenue before hitting $1B TVL, all early value flows to the community. This ensures that the token, its builders, and users benefit first before Paxos starts to make money.
This step is a turning point for stablecoins and decentralized finance. If carried out, this may go a long way as a foundation of on-chain finance around the world.

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#Paxos #USDH #ProposalV2 #Released