- Paxos secures PayPal partnership for HYPE listings and USDH payment integrations.
- Revised reward structure caps Paxos earnings at 5% with milestone-based compensation.
- Global scaling framework positions USDH as a gateway stablecoin for DeFi adoption.
Paxos has released an updated version of its USDH stablecoin proposal for the Hyperliquid ecosystem, with three core upgrades designed to accelerate global adoption. The revised framework addresses community feedback from the initial proposal and also introduces strategic partnerships that could unlock access to hundreds of millions of users.
The centerpiece of USDH Proposal V2 is a comprehensive partnership with PayPal that includes HYPE token listings on PayPal and Venmo platforms, subject to regulatory approvals. This collaboration extends beyond simple asset listings to include free on/off-ramp services for USDH and $20 million in ecosystem incentives committed by PayPal.
PayPal Ecosystem Integration Spans Multiple Platforms
PayPal’s commitment includes integration support across its entire payment infrastructure, covering Checkout, Braintree, Venmo, Hyperwallet, and Xoom services. The partnership leverages PayPal’s existing Pay With Crypto solution to incorporate USDH and HYPE tokens, which will expose the assets to PayPal’s processing volume exceeding $1 trillion annually.
Related: Bitcoin Has Company: Solana, Sui, and HYPE Join the Corporate Balance Sheet
Venmo integration targets the leading social payment network in the United States, focusing on peer-to-peer transactions and merchant payments. Hyperwallet support enables global payout solutions for contractors and freelancers, while Xoom integration provides access to remittance services across more than 100 countries.
The revised reward structure addresses community concerns about value distribution and incentive alignment. Paxos will receive zero compensation until USDH reaches $1 billion in total value locked, with earnings capped at 5% beyond $5 billion TVL. All fees earned by Paxos through milestone achievements will be held in HYPE tokens, directly aligning interests with the community.
Paxos’s Initial Phases Prioritize Ecosystem Growth
Initial phases prioritize ecosystem growth through a 20% allocation to the Algorithmic Foundation, which increases based on TVL milestones. Ecosystem incentives focus on bootstrap liquidity and integrations across markets before tapering off as USDH achieves network effects and sustainable growth.
Paxos emphasizes its unique position as the only stablecoin issuer capable of legal global issuance, particularly highlighting exclusive European licensing capabilities. This regulatory framework enables USDH to scale internationally while maintaining full compliance across jurisdictions.
The proposal outlines strategic initiatives for Hyperliquid’s evolution from a consumer trading platform to an enterprise liquidity infrastructure. Paxos plans to integrate builder codes with fintech enterprises and brokerage, and enable new users to access Hyperliquid liquidity without understanding the underlying technical details.
Additional development includes structured products and DeFi offerings built on HyperEVM, with plans for embedded Earn products accessible through simple API integration. The framework establishes governance mechanisms allowing the Hyperliquid community to vote on distribution structure amendments at each growth milestone.
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