Paxos Labs has presented the second version of its USDH proposal, aiming to position Hyperliquid for global growth. The plan introduces major upgrades, including a partnership with PayPal, a new rewards system, and initiatives for worldwide expansion.
The strategy revolves around linking Hyperliquid’s growth to USDH’s success, where Paxos only generates revenues when the ecosystem reaches scale. PayPal’s partnership is the focus of such a strategy. HYPE, Hyperliquid’s token, is set to go live on PayPal and Venmo, opening up a channel to millions of customers.
USDH shall have free on and off-ramps, facilitating increased accessibility in transactional use cases. PayPal also made a commitment of $20 million in incentives and shall integrate USDH in its cross-border payment services, including Checkout, Braintree, Venmo, Hyperwallet, and Xoom.
PayPal integration extends Hyperliquid to Global users
It brings Hyperliquid into the world of merchants, freelancers, and consumers worldwide via PayPal’s $1 trillion in payments per annum and huge user base. PayPal’s reward system also changes in this plan.
Paxos Labs commits only to earning when USDH achieves certain milestones. Fees remain at 5 percent and are taken in HYPE tokens, putting Paxos in perfect sync with the growth of the community. Earned interest in the early phase will go towards assembling liquidity and integrations, creating stronger growth incentives.
The community called for more explicit terms, and this newer model offers exactly that while guaranteeing growth rewards HYPE token holders first. Scaling globally constitutes the third pillar of the plan. Paxos Labs shall cooperate with Paxos, the sole issuer in a position today to legally issue stablecoins throughout Europe and globally.
Paxos secures edge with full regulatory coverage for USDH
No such regulatory coverage exists for competitors, so only Paxos can assure that USDH expands in a fully compliant way. The proposal highlights the background of Paxos in powering the likes of Stripe, Mastercard, and Robinhood. Hyperliquid’s next step is going to leverage the same infrastructure.
It goes one step further in outlining strategic initiatives. Hyperliquid will transform from a consumer trading platform to an enterprise liquidity infrastructure. Builders and brokerages will route orders directly into Hyperliquid without needing to have the users familiar with the backend.
Paxos will also bring in fresh asset issuers via HIP-3 market formation and use the HyperEVM to bring lending, collateral, and structured DeFi products to international markets. USDH is branded by Paxos as the stablecoin onramp for DeFi uptake.
The strategy correlates incentives with actual growth, strengthens cooperation with foreign enterprises, and coordinates with civic governance to place USDH as the foundation for expanding Hyperliquid into a global center of finance.
