Paxos Positions Itself for the Hyperliquid Stablecoin Partnership

Paxos Hyperliquid Stablecoin Partnership: PayPal and Venmo on Support

Leading blockchain and stablecoin issuer Paxos has officially made its case to become the native stablecoin partner for Hyperliquid (HL), a fastest-growing ecosystem in crypto world. In a detailed proposal shared with the community, Paxos explained why it believes it is the right partner to issue USDH. Hyperliquid stablecoin partnership is now looking like a competition where everyone wants to become first. 

Source: Paxos_Official

What make Paxos Think as a Suitable Partner

• Strong Hyperliquid-Connection: The platform bought Molecular, the team behind Hyperliquid, giving them insider knowledge to design USDH specifically for Hyperliquid-users. 

• Focus on Integration and Growth: The blockchain will add USDH and HYPE to major payment platforms like PayPal and Venmo, with free USD deposits and withdrawals.

• Regulatory Compliance: Paxos is regulated by authorities like NYDFS and MAS, giving USDH clear compliance and helping it reach globally more quickly. 

• Proven Track Record: The platform has issued more than $160 billion in stablecoins on multiple blockchains, supporting major crypto and payment platforms. 

Why a PayPal Partnership Matters

PayPal is reportedly going “all-in” on USDH-Stablecoin through its partnership. This collaboration could be a major boost for the platform. 

• USDH and HYPE could reach 400M+ users through PayPal and Venmo.

• PayPal may give Hyper-liquid a $20M growth boost.

• USDH is paxos-bached and MiCA-compliant, unlike USDT.

• The stablecoin could work in PayPal-Checkout, Braintree, and Crypto Pay.

• With PayPal’s scale, USDH-coin could challenge USDT as the leading stablecoin.

If approved, projections suggest PayPal could earn $300-500M over five years from USDH-transactions.

Source: X

Which is More High: Acquiring Race or Controversies

Several companies are competing to issue the fixed value coins. Where native market leads the race with 92% odds, while Paxos-holds 7.6% and pushes MiCA compliance and HYPE buybacks. Other players include Agora, Sky, Ethena, BitGo, and OpenEden. Here community voters will decide who manages Hyper-liquid’s $5.9B reserve, now mostly in USDC. 

At the same time, some in the crypto community doubt the fitness of the process. Dragonfly’s Haseeb Qureshi called it “a bit of a farce,” hinting insiders may back Native Markets. OAK Research’s Lilian Alianga noted bias since Native Markets submitted so quickly despite being new. Both native Markets and Paxos say they follow the GENIUS Act and will share reserve yields with Hyperliquid’s Assistance Fund to support the ecosystem. 

Summary

The USDH-stablecoin decision could reshape Hyperliquid’s future, expand its DeFi influence, and even impact the broader stablecoin market. A partnership with PayPal-Paxos could increase adoption, while Native Markets’ bid represents the competitive, community-driven nature of Decentralized finance governance.