Paxos Backs USDH Stablecoin Proposal to Drive Hyperliquid Growth

USDH Stablecoin by Paxos Could Drive Hyperliquid Growth and Boost HYPE

Paxos, a well-known name in the stablecoin industry, has just submitted a proposal to bring the USDH stablecoin to Hyperliquid. This is big news for the project because Paxos has a history of building trusted products that follow strict rules. 

Source: X (formerly Twitter) 

The proposal is built around global issuance that is fully compliant under the GENIUS framework, which means it has the potential to scale far beyond small crypto circles.

How USDH Will Work for Hyperliquid

The most talked-about part of the plan is the revenue-sharing model. Paxos explained that 95% of the interest earned from reserves behind the USDH stablecoin will be used to buy back HYPE tokens. Those repurchased tokens will go back into the ecosystem, helping protocols, validators, and partners. In simple terms, the more this stablecoin grows, the more support flows back to this altcoin

Some community members are even asking them to increase that number to 99%, saying it would make the proposal stronger and give HYPE holders even more value.

Why Traders See It as Bullish

This proposal is being called one of the most bullish catalysts Hyperliquid has seen so far. By tying the USDH stablecoin to a regulated issuer like Paxos, Hyperliquid gains something many crypto projects lack: trust. That kind of trust can open doors for bigger investors and institutions who normally avoid riskier platforms.

On social media, the mood is euphoric. Developers, influencers, and even whale traders are openly excited about the news. If everything goes as planned, Hyper-liquid could experience a powerful growth cycle with more trading activity and deeper liquidity.

Short-Term Caution Still Matters

Of course, the market never moves in one straight line. Indicators show that whales are already long on HYPE, and momentum signals like MACD have turned bullish. But at the same time, other technicals suggest the market is overbought, meaning traders should expect some chop or even small pullbacks in the near term. A “sell-the-news” moment could happen if people try to lock in quick profits.

HYPE Price Reaction So Far

Right now, it is priced at $46.81, which is slightly down by 0.41% in the past day. Earlier, the token had pushed above $47.30 but gave back some gains as the broader market cooled off. Even with this minor drop, Hyperliquid’s market cap stands strong at over $15.6 billion.

Source: CoinMarketCap

Many think that once the USDH stablecoin is live and Paxos begins buybacks, HYPE may experience more robust demand and potentially higher prices. It may not occur overnight, but consistent repurchases should provide long-term value for investors.

What This Means Going Forward

The proposal indicates that Hyperliquid is not merely pursuing hype but something more: stability, compliance, and scale. If Paxos executes on its vision for the USDH stablecoin, Hyperliquid may transition from being a rapidly growing project to a reliable global platform. For traders and believers alike, this might be the turning point.