Paxos Launches USDH on Hyperliquid with PayPal, Venmo & Xoom
Paxos has updated its proposal to issue the USDH stablecoin on the Hyperliquid trading platform, securing support from PayPal, Venmo and Xoom. Under the deal, PayPal will list the HYPE token and integrate USDH stablecoin into its checkout system, while Venmo and Xoom will offer free on- and off-ramps. The plan also includes a $20 million incentive pool to boost the HYPE ecosystem.
The revised fee model ties Paxos’ revenue to Hyperliquid’s total value locked (TVL): zero fees until $1 billion TVL, a 1% fee once TVL hits $1 billion, and up to 5% after TVL exceeds $5 billion. Fees are collected in HYPE tokens and funneled into an Assistance Fund, dedicating up to 80% for early development before shifting to token buybacks and insurance. The proposal leverages Paxos’ EU regulatory licenses to facilitate cross-border USDH stablecoin circulation, and positions USDH against rival stablecoins backed by MoonPay, Stripe-linked entities and Ethena Labs.
This update bridges DeFi with traditional payment rails, potentially increasing adoption of the USDH stablecoin and improving market liquidity for cryptocurrency traders.
Bullish
The integration of PayPal, Venmo and Xoom ramps lowers entry barriers for new users, while the $20 million incentive pool and tiered fee model align Paxos’ interests with Hyperliquid growth. Leveraging EU regulatory compliance and offering zero-fee periods until $1 billion TVL should drive early adoption of the USDH stablecoin and boost liquidity. Traders can expect increased demand and tighter spreads, supporting a bullish outlook for USDH in both the short and long term.